US chief executives are beginning to wean themselves from their perplexing attachment to the role of chairman. But at a few large banks, the addiction persists. Read more
JP Morgan’s sudden conference call to disclose, and to try to explain, the $2bn trading loss that it racked up in only six weeks was one of the most absorbing bits of live financial theatre since the 2008 crash.
The star of the show, naturally, was Jamie Dimon, the bank’s ebullient and outspoken chief executive, who has been out in front leading the industry’s defence of “too big too fail” banks and pushing back against new capital requirements.
Mr Dimon isn’t given to mincing his words and he certainly didn’t this time, as I noted on Twitter while listening:
“Bad strategy, badly executed and poorly monitored” that was intended to hedge against stressed credit markets
Lost $2bn in six weeks. “We made these positions more complex. This strategy was badly executed and badly monitored.”
“Could easily get worse this quarter and there will also be a lot of volatility next quarter . . . my general counsel is sitting right here”