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Why Jamie Dimon apologized to Elizabeth Warren

Warren began his query by asking what number of instances of fraud had been reported to his financial institution from clients utilizing Zelle, a well-liked funds platform that’s collectively owned by plenty of banks together with JPMorgan.

Zelle, Warren mentioned, has helped enhance financial institution earnings whereas “dishonest” clients at the least half a billion {dollars}. Customers despatched $490 billion by Zelle in 2021, of which an estimated $440 million was misplaced by fraud and scams, in accordance with Early Warning Companies, Zelle’s mum or dad firm.

Warren mentioned he had contacted JPMorgan and different banks in July for solutions however had been “blocked” and had acquired no info.

“You did not give us any of the knowledge we requested for,” he advised Dimon throughout a Senate listening to. “Is it since you do not observe when your clients report fraudulent Zelle transactions? Or since you do observe and you understand precisely what number of fraudulent transactions have been reported and also you need to maintain it personal?”

Dimon mentioned, “I am very sorry if we did not provide the quantity you requested for.”

The variety of frauds for the service, he mentioned, was “comparatively small.” When Warren dials a sure quantity, Dimon guarantees to present it to him on the finish of the day.

“Nice,” mentioned Warren. “We’ll get it on the finish of the day as soon as nobody’s right here to speak about it.”

He additionally mentioned that when a buyer falls sufferer to a rip-off on the platform, they’re largely left to face the results on their very own.

A spokesperson for JPMorgan disputed the thought, saying in an electronic mail that “we reimburse clients for unauthorized transactions which might be reported in a well timed method, and in addition reimburse transaction charges the place shoppers are fraudulently persuaded to supply account entry credentials that are then utilized by malicious actors to make a fee.”

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

This is not the primary time Warren has come nose to nose with Dimon. Final 12 months, Warren known as Dimon a “star of the overdraft present” and accused him of prioritizing earnings over struggling Individuals. “Your financial institution, JPMorgan, collects greater than seven occasions extra money in overdraft charges per account than your opponents,” he mentioned.

Dimon replied that Warren’s quantity was “completely inaccurate.”

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