JPMorgan boss Jamie Dimon admits failures

Jamie Dimon Jamie Dimon blamed "errors, sloppiness and bad judgement" for the losses

The chief executive of JPMorgan Chase, Jamie Dimon, says he was "dead wrong" in April to dismiss concerns over the bank's trading practices.

At the time he played down concerns over bets the bank made on the markets.

On Thursday JPMorgan said it had lost $2bn (£1.2bn) on trading activities in just six weeks, and said there could be further losses to come.

In a US television interview, Mr Dimon said he did not know the full extent of the problem in April.

Back then he described the concerns as a "tempest in a teapot".

Speaking on NBC's Meet the Press Mister Dimon said: "We made a terrible, egregious mistake, there's almost no excuse for it."

The bank's shares plunged by almost 10% on Friday, wiping $14bn from its value.

The losses have prompted US politicians to call for tighter financial regulation.

'Bad judgement'

The company said the losses resulted from a strategy of hedging that was supposed to protect the bank from risk.

But critics disputed his claims, alleging that such losses were more likely to have come from risky bets.

Start Quote

The shock evinced by Mr Dimon will reignite the debate about whether regulators need to take more decisive action to curb the complexity of investment banks”

End Quote

On Thursday, Mr Dimon, who serves both as chief executive and chairman of JPMorgan, blamed the losses on "errors, sloppiness and bad judgement" and warned "it could get worse".

The trading loss was revealed in a regulatory filing, and will dent the company's profits, although it still expects to make about $4bn this quarter.

Analysts say the firm is still in better health than many of its competitors, and the losses incurred should be manageable.

The trading was carried out by a small unit based in London.

Media reports have focused on a single trader, Frenchman Bruno Michel Iksil, nicknamed the London Whale, who reportedly made big bets on the financial markets as part of a hedging strategy.

But insiders have dismissed claims that he was a "rogue trader", saying it was the wider strategy that was at fault.

US regulators have said they are taking notice of the developments, but no inquiry has yet been officially announced.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • Stained glass of man with swordFrance 1 England 0

    The most important battle you have probably never heard of

  • Golden retriever10 things

    Dogs get jealous, and nine more nuggets from the week's news

  • Pro-Israel demonstrators shout slogans while protesting in Berlin - 25 July 2014Holocaust guilt

    Gaza conflict leaves Germans confused over who to support

  • The emir of Kuwait Sheikh Sabah al-Ahmad al-Jaber al-SabahFreedoms fear

    Growing concern for rights as Kuwait revokes citizenships

Elsewhere on the BBC

  • CastleRoyal real estate

    No longer reserved for kings and queens, some find living in a castle simply divine


  • Leader of Hamas Khaled MeshaalHARDtalk Watch

    BBC exclusive: Hamas leader on the eagerness to end bloodshed in Gaza

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.