Since Sunday, reports have surfaced the JP Morgan’s board may release a report blaming CEO Jamie Dimon for last year’s the $6.2 billion ‘London Whale’ trading loss.According to Dealbook, they’re going to ‘let it all hang out’, as Dimon himself put it, and release the report.
It all started last April, when the bank brushed aside reports that a trader in the London Chief Investment Office was building a massive position in credit derivatives. In May, though, the bank held a conference call admitting that Burno Iksil (aka the London Whale) had lost the bank $2 billion.
By summer that number had increased to $6.2 billion as heads at JP Morgan rolled and hedge fund Blue Mountain Capital helped the bank unwind the trade.
But the punishment couldn’t end there. From Dealbook:
Some within the bank were wary of releasing the report, which takes aim at lax supervision and risk controls, according to the people who insisted on anonymity because the discussions are not public. One concern was that plaintiff attorneys might seize on the report, the people said.
But, Jamie Dimon, the bank’s chief executive, argued that the report should be released. The report is expected to be critical of Douglas Braunstein, formerly the bank’s chief financial officer, for failing to strictly monitor the activities of the traders in London.
So tomorrow’s earnings call should be interesting —not for the numbers, which are supposed to be stellar — but for the moment when Dimon and Braunstein have the floor.