Top JP Morgan Chase exec to resign over loss (CBS News) Three executives are out at the nation's largest bank, JP Morgan Chase, after the bank revealed on Thursday it lost at least $2 billion in risky trades. Those stepping down include the senior executive who oversaw the trades and two of her traders. Earlier in the day, CEO Jamie Dimon called the trades "a terrible, egregious mistake." He also acknowledged the Security and Exchange Commission is investigating whether rules were broken. We know there was bad judgment. We don't know if any of that is true yet. And of course regulators should look at something like this. That's their job so we are totally open to regulators and they will come to their own conclusions," Dimon said. We took far too much risk, the strategy that we had was barely vetted, it was badly monitored. It should never have happened. Michael Greenberger, a former Wall Street regulator and current law professor, said it should come as little surprise that smart, savvy bankers like Dimon made mistakes like this. These kinds of transactions are as complex as they are risky. And it's very difficult for anybody really to understand what's going on. I think (in) the end (it will be) shown the trader himself didn't understand what was going on," Greenberger said. Warren: JPMorgan CEO should resign from NY Fed Watch: JPMorgan Chase CEO admits mistakes JPMorgan Chase: London whale swallows $2B Part of the problem is not just understanding these trades. "These traders are given enormous discretion without proper supervision or Understanding, and you end up with these enormous losses," Greeneberger said. The sweeping financial reform bill that was passed in the wake of the last financial crisis - the Dodd-Frank bill - would have had safe guards in place to prevent these trades, had they been implemented, Greenberger said. "This kind of trade would have been banned" under a fully-implemented Dodd-Frank, Greenberger said. JP Morgan Chase has been arguing that these kinds of trades should go forward. But (some of the rules) on Dodd-Frank, the way they were written, these kinds of risky, complex trades would be banned. What's scary about the situation is how likely it is to happen again. "Of course it could happen at another bank next week," Greenberger said. JP Morgan Chase and Jamie Dimon are the brightest guys in the room. If they have this problem, god knows how many other people have these problems. And this could lead us right back to where we were in 2008.