There was a relatively easy ride for JPMorgan Chase’s boss at the annual shareholders’ meeting on Tuesday.
Only a handful of anti-capitalism protesters gathered outside while inside investors asked few hard questions of boss Jamie Dimon about the bank’s two billion dollar trading loss.
He promised “changes in policies and procedures” and indicated that top executives who oversaw the losing trades may have to pay back salaries and bonuses.
Dimon said JPMorgan would pursue more disciplinary action against those who were responsible. “We will do the right thing. That may well include clawbacks,” he told reporters after the annual meeting.
At the same time it was reported that the FBI has opened an investigation into the trading losses at JPMorgan Chase.
That steps up the pressure on the bank after the US Securities and Exchange Commission and the Federal Reserve said they were also looking into the wrong-way bets that led to the losses.
In Washington, US Treasury Secretary Timothy Geithner said JPMorgan’s losses strengthened the case for reform.
“I think this failure of risk management is just a very powerful case for … financial reform,” Geithner told an event sponsored by the Peterson Foundation.
“The test of reform is not whether you can prevent banks from making mistakes … the test of reform should be: ‘Do those mistakes put at risk the broader economy, the financial system or the taxpayer?’”