Just days after JPMorgan Chase and Co disclosed a $2 billion trading loss, the bank's embattled Chief Executive Jamie Dimon apologized to shareholders in Tampa, Florida on Tuesday (May 15), saying the losses were self-inflicted.
Dimon said the bank would pursue more disciplinary action against those who were responsible.
We ended up with a strategy that was flawed, complex, poorly conceived, poorly vetted and poorly executed. This should have never happened. I can't justify it, unfortunately these mistakes were self-inflicted. We are fully engaged now in doing a thorough review of the issues that led to these losses. There are many lessons here and many changes in policy and procedures that have already been implemented. In addition all corrective action will be taken as necessary, Dimon said at the bank's annual shareholders meeting.
Many shareholders at the brief meeting supported a proposal to split the roles of chairman and CEO, both positions held by Dimon.
Businesses like JPM need proper structures like checks and balance to ensure that risks are properly managed. Independent board leadership which is mandatory in the UK is reform increasingly supported by U.S. investors and directors. It goes to the heart of corporate governance. Who runs the board and what is the board's role? Is it to work on behalf of stockholders or to work on the behalf of the CEO? We maintain it should work on the behalf of stockholders and its a CEO's job to do the same. Having an independent share prevents any blurring of those lines, said Lisa Lindsley of the American Federation of State, County and Municipal Employees (AFSCME).
Though shareholders mostly gave Dimon a pass, voting against a proposal to split the jobs of CEO and chairman, pressure mounted on the bank to reclaim some of the millions of dollars it paid to the executives who oversaw the trades.
Jamie Dimon is both the CEO and the Chair which is equivalent to being your own boss and accountability is the problem that we're having with the loss of 2 billion dollars in derivatives. The unit wasn't properly overseen. So who oversees that unit? Jamie Dimon. Who oversees Jamie? Jamie. That's the problem. He's his own boss. The board of directors is supposed to hold the executive accountable, said Peter Skillern, executive director of Reinvestment Partners.
Outside the meeting protesters chanted slogans against the bank and aimed eggs at posters of Dimon.
The big banks need to be broken up as well as reducing principle for homeowners that are underwater with their mortgages and clearly for them to stay out of, keep their money out of the politics, which is really destroying our democracy right now, said protester Denize Diaz.
The FBI has opened a probe into the trading losses at JPMorgan Chase & Co, stepping up the pressure on the bank after the U.S. Securities and Exchange Commission and the Federal Reserve said they were also looking into the wrong-way bets that led to the losses.
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