Bloomberg reports that Jackson, 71, at the National Association of Corporate Directors’ annual conference in Oxon Hill, Maryland said yesterday: 'He’s the best manager I’ve ever seen, and I’m old. He has, as we all do, flaws'.
JPMorgan agreed to pay $920m in penalties last month to settle probes of a multibillion-dollar trading loss, one of myriad woes that forced the New York-based lender to set aside $28bn for legal costs since early 2010. The debacle was caused by a group of 'renegades' inside the chief investment office who thought they had found the perfect trade, said Jackson, who heads the audit committee.
'People get to smoking their own dope', Jackson said. 'I’m sure there was some hubris involved'.
Senior executives had evidence by late April 2012 that traders in the chief investment office in London were pricing a derivatives portfolio in a way that reduced reported losses, the Securities and Exchange Commission said last month in a cease-and-desist order. Those top managers didn’t pass the information to Jackson’s audit committee, and the bank was forced to restate results once the full extent of the losses was revealed, the SEC said.
Jackson, when asked about Dimon’s openness with the board about the trade, said communication was the 'least of our problems'.
To access the complete Bloomberg article hit the link below
image: © brydeb