By Pam Martens: June 18, 2012

SEC Chair Mary Schapiro

Mary Schapiro, Chair of the Securities and Exchange Commission, has released her written statement for tomorrow’s hearing before the House Financial Services Committee regarding JPMorgan Chase’s losses.

Based on the text, a number of problematic areas may arise for Chairman and CEO, Jamie Dimon, who signed off on the firm’s first quarter financial filings with the SEC:

• Was there adequate disclosure of the credit default insurance sold to hedge funds and the ensuing income the firm was receiving from this high risk source;
• Was the potential for losses on all synthetic credit products adequately described;
• Did the firm properly detail the collateral calls that could arise on these synthetic credit derivatives.
• Why wasn’t the change to the VAR (Value at Risk) disclosed to investors?

Read the full text of the statement here.