JPMorgan Chase CEO Jamie Dimon, head of the largest bank in the US, testifies on Capitol Hill in Washington, Wednesday, June 13, 2012, before the Senate Banking Committee about on how his company recently lost more than $2 billion on risky trades and whether its executives failed to properly manage those risks. (AP Photo/Haraz N. Ghanbari)
WASHINGTON (AP) — JPMorgan Chase CEO Jamie Dimon told Congress on Wednesday that senior bank executives responsible for a $2 billion trading loss will probably have some of their pay taken back by the company.
Under bank policy, stock grants and bonuses can be recovered from executives, even for exercising bad judgment, Dimon told the Senate Banking Commitee. The policy has never been invoked, he said, but he strongly suggested that it will be.
“It’s likely that there will be clawbacks,” he said.
Among the most likely candidates would be Ina Drew, JPMorgan’s chief investment officer, who left the bank days after Dimon disclosed the loss on May 10. Drew oversaw the trading group responsible for the $2 billion loss.
Dimon, under close questioning from lawmakers about his own role in setting up the investment division responsible for the mess, declared: “We made a mistake. I’m absolutely responsible. The buck stops with me.”
The trading loss has raised concerns that the biggest banks still pose risks to the U.S. financial system, less than four years after the financial crisis erupted in the fall of 2008.
Dimon’s reputation for cost cutting and his perceived mastery of risk, particularly during the crisis, earned him respect in Washington. JPMorgan Chase & Co. weathered the crisis with relatively little damage.
At every turn before the committee, Dimon responded easily and in rapid-fire style to questions. He sounded notes of contrition — “We should have gotten it earlier” — but also defended the bank and his own criticism of some financial regulation.
Other than a few critical jabs from a couple of Democratic senators, the panel’s treatment of Dimon was gentle Login to read more