Why Jamie Dimon Apologized to Elizabeth Warren

New York
CNN Business

JPMorgan Chase CEO Jamie Dimon testified Thursday on Capitol Hill for the second day in a row. This time I faced his longtime critic Sen. Elizabeth Warren.

Warren began his round of questions by asking how many cases of fraud had been reported to his bank by customers using Zelle, a popular payment platform jointly owned by a number of banks, including JPMorgan.

Zelle, Warren said, helped boost bank profits while “cheating” customers of at least half a billion dollars. Consumers will spend $490 billion through Zelle in 2021, of which about $440 million was lost to fraud and scams, according to Early Warning Services, Zelle’s parent company.

Warren said she contacted JPMorgan and other banks in July for a response, but was “blocked” and received no information.

“You haven’t provided any of the information we requested,” she told Dimon during the Senate hearing. “Is it because you don’t know when your customers report fraudulent Zelle transactions? Or is it because you keep track and know exactly how many fraudulent transactions have been reported and want to keep it secret?”

Dimon said, “I deeply apologize if we didn’t give you the numbers you requested.”

The amount of fraud for the service, he said, is “relatively small”. When Warren pressed for hard numbers, Dimon promised to get them to him by the end of the day.

“Awesome,” Warren said. “We’ll have it by the end of the day once no one is around to talk about it.”

She also said that when a customer is defrauded on the platform, they largely have to deal with the repercussions themselves.

A JPMorgan spokesperson disputed the idea, stating in an email that “we reimburse customers for unauthorized transactions reported in a timely manner, and also reimburse transactions where the consumer is fraudulently tricked into providing credentials. access to the account which are then used by a malicious actor to make a payment.”

Dimon was joined in the Senate by Charles Scharf, CEO of Wells Fargo, Brian Thomas Moynihan, CEO of Bank of America, Jane Fraser, CEO of Citigroup, William Rogers Jr., CEO of Truist, Andy Cecere, CEO of US Bancorp, and William Demchak, CEO of PNC.

This isn’t the first time Warren has faced Dimon. Last year, Warren called Dimon a “star of the overdraft show” and accused him of prioritizing profits over struggling Americans. “Your bank, JPMorgan, collects over seven times more money in overdraft fees per account than your competitors,” she told him.

Dimon replied that Warren’s numbers were “totally inaccurate”.