Did Dimon (Chase) prefer compensation using terrible judgement in the loss of 2 billion?
Group, a labor-backed shareholder group, last year warned JPMorgan Chase
& Co that its risk management committee was not up to the task and
sought to remove one of its members, Ellen Futter, who had been a
director at American International Group Inc (AIG) before its
near-collapse in 2008.
JPMorgan's proxy statements say the bank's chief
executive is responsible for setting the overall risk appetite for the
firm, while the heads of individual lines of business are responsible
for setting the risk appetite for their respective units, subject to
approval by the corporation's chief executive and its chief risk
GMI Ratings gave its lowest rating - "F" - to
JPMorgan's corporate governance policies in general before disclosure of
the loss. Fewer than 5 percent of the companies rated by GMI get the
bottom ranking, said senior research associate Paul Hodgson.
also ranked JPMorgan's financial statements lower than 92 percent of
comparable firms in terms of accounting and governance risk.
Chief Executive Jamie Dimon acknowledged that the trading strategy that
led to the loss was "flawed, complex, poorly reviewed, poorly executed,
and poorly monitored."
The FBI and SEC are investigating JP Morgan Chase.
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