HomeBusinessWhy Jamie Dimon apologized to Elizabeth Warren

Why Jamie Dimon apologized to Elizabeth Warren

Warren started her question by asking how many cases of fraud at his bank had been reported by customers using Zelle, a popular payment platform jointly owned by a number of banks, including JPMorgan.

Zelle, Warren said, has helped boost bank profits while “cheating” customers out of at least half a billion dollars. Consumers sent $490 billion through Zelle in 2021, of which an estimated $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 an answer, but was “blocked” and had not received any information.

“You did not provide the information we asked for,” she told Dimon during the Senate hearing. “Is that because you don’t keep track of when your customers report fraudulent Zelle transactions? Or because you do keep a record and you know exactly how many fraudulent transactions have been reported and you want to keep that secret?”

Dimon said, “I’m very sorry if we didn’t give you the numbers you asked for.”

The amount of fraud for the service, he said, is “relatively small”. When Warren insisted on specific numbers, Dimon promised to deliver them to her at the end of the day.

“Great,” Warren said. “We’ll get it at the end of the day when there’s no one to talk about it.”

She also said that when a customer falls victim to fraud on the platform, they largely have to deal with the consequences themselves.

A JPMorgan spokesperson disputed the idea, saying in an email that “we will reimburse customers for unauthorized transactions that are reported in a timely manner, as well as fees for transactions where the consumer is fraudulently persuaded to provide account access credentials that are then passed on by a malicious people are used to make a payment.”

Must Read
GM workers will return to office at least 3 days a week

Dimon was joined in the Senate by Wells Fargo CEO Charles Scharf, Bank 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 isn’t the first time Warren has taken on Dimon. Last year, Warren called Dimon the “star of the current account show” and accused him of prioritizing profits over struggling Americans. “Your bank, JPMorgan, collects more than seven times more money in overdrafts per account than your competitors,” she told him.

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

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments