Jpmorgan boss: Execs may pay
WASHINGTON — 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 Committee. 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.”
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.
The start of the hearing was delayed by demonstrators in the room who shouted about stopping foreclosures. Another demonstrator shouted, “Jamie Dimon’s a crook.” At least a dozen people were escorted from the hearing room.