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Did Dimon (Chase) prefer compensation using terrible judgement in the loss of 2 billion?

Jimbo 2012/05/16 00:44:05
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CtW Investment
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
officer.

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.

GMI
also ranked JPMorgan's financial statements lower than 92 percent of
comparable firms in terms of accounting and governance risk.

JPMorgan
Chief Executive Jamie Dimon acknowledged that the trading strategy that
led to the loss was "flawed, complex, poorly reviewed, poorly executed,
and poorly monitored."

http://www.reuters.com/article/2012/05/15/us-jpmorgan-warning...

The FBI and SEC are investigating JP Morgan Chase.

http://www.nbcnewyork.com/news/local/JP-Morgan-Chase-Loss-FBI...

http://www.forbes.com/sites/halahtouryalai/2012/05/15/more-ba...

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Top Opinion

  • ETpro 2012/05/16 00:58:33
    Yes
    ETpro
    +4
    The press has grosly understated how much risk JPMorgan Chase took. They have erported that the loss was $2 billion and also that the Bank has total assets of $217 billion. All this is true. But the bet they made that lost $2 billion was a $100 billion bet. It only lost 2%. It could have totally tanked. If it had, there is no way JPMorgan Chanse could have covered a $100 billion loss. They would be so far short of it that they wouldn't be able to pay depositors; and once more the US Taxpayer would have to rush in and cover their losses. Once more, the banksters get to keep all the winnings in casino capitalism, and the taxpayers pay when they loose.

    Bear in mind Mitt Romney wants to make it even easier for his palls on Wall Street to play Casino Capitalism with all winnings going to them and all losses going to the little people.

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Opinions

  • JCD aka "biz" 2012/05/18 21:22:17
    Yes
    JCD aka "biz"
    Now it"s THREE billion.
  • EdVenture 2012/05/16 02:26:49
    Yes
    EdVenture
    Dim, is being pro-active because that bad news is not out and he likely reads and has an inside track how Europes issues will affect America, brace yourself.
  • Carol 2012/05/16 01:16:52
    Yes
    Carol
    +1
    It is not the debt to worry about it is banking risky business. Thats what will keep America in the hole, without decent reform.
  • sjalan 2012/05/16 01:04:02
    Yes
    sjalan
    +1
    He looked the other way and just nodded his head. He's a fool.
  • NPC 2012/05/16 01:03:26
    Another opinion
    NPC
    +1
    JPMorgan Chase is a Wall Street private sector banking corporation. This outfit has been trying to make money the old fashioned way but has been regulated into taking more risks due to hieghtened competition and survival. I beleive they should have never been bailed out by the Democrats and Barack.
  • Jimbo NPC 2012/05/16 01:39:55
    Jimbo
    +1
    Sorry to burst your bubble. Chase is the only bank that did not need TARP to survive. They in fact had bought oil futures that got oil up to $138/bbl making gas $4.05 a gallon in July 2008 trying to burst the housing bubble (Goldman Sachs too). All the small banks that went under had Potter (Chase) picking up a few bargains. Most of them changed their signs to Chase instead of another bank.
  • ETpro 2012/05/16 00:58:33
    Yes
    ETpro
    +4
    The press has grosly understated how much risk JPMorgan Chase took. They have erported that the loss was $2 billion and also that the Bank has total assets of $217 billion. All this is true. But the bet they made that lost $2 billion was a $100 billion bet. It only lost 2%. It could have totally tanked. If it had, there is no way JPMorgan Chanse could have covered a $100 billion loss. They would be so far short of it that they wouldn't be able to pay depositors; and once more the US Taxpayer would have to rush in and cover their losses. Once more, the banksters get to keep all the winnings in casino capitalism, and the taxpayers pay when they loose.

    Bear in mind Mitt Romney wants to make it even easier for his palls on Wall Street to play Casino Capitalism with all winnings going to them and all losses going to the little people.
  • NPC ETpro 2012/05/16 01:05:04
    NPC
    +1
    Chase was one of the largest lender donors to the Democrats and Barry Soetoro. Dimon is a Progressive Democrat.
  • Jimbo NPC 2012/05/16 04:16:18
    Jimbo
    +2
    Which is why Goldman and Chase did not get the Hunt brother type prosecution when they bid oil up to $138/bbl using futures. We must have only public campaign financing if we are to rid ourselves of the government of the connected, by the connected, for the connected.
  • #Justic... ETpro 2012/05/16 01:10:20
    #Justice4Trayvon 629 BLOCKT CONS
    +3
    That's why I keep saying, re-implement Glass-Steagall. These jokers are gonna tank our economy once again.
  • Jimbo #Justic... 2012/05/16 04:17:27
    Jimbo
    +2
    Sen. Dorgan has done a few interviews recently about it. He was right in 1999 saying we will be sorry in a decade.
  • #Justic... Jimbo 2012/05/16 20:25:42
    #Justice4Trayvon 629 BLOCKT CONS
    It's amazing how some can see "the handwriting on the wall" & others are so motivated by greed that even if they have seen it or know the lessons of history they will still move ahead irregardless.
  • Jimbo 2012/05/16 00:46:59
    Yes
    Jimbo
    +2
    AIG tooks risks they could not cover but took more than 50% of premiums in commissions and bonuses. Their hedges for banks could not be met causing TARP and the great recession. Dimon put an AIG bigwig to oversee their risk on a hedge that skirted the law that regulates banks. I'm sure he thought he would cash out with a big bonus.

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