Wed June 13, 2012
JPMorgan Execs Who Bungled Billions May Have To Return Bonuses, Stock
Along with saying, again, that his bank "let a lot of people down" when it lost more than $2 billion, JPMorgan Chase CEO Jamie Dimon added this prediction during his testimony before the Senate Banking Committee this morning:
"It's likely that there will be clawbacks."
Translation: The bank will move to recover stocks and bonuses paid to the executives responsible for the losses it suffered because of some risky trades that went very bad.
According to The Associated Press, "under bank policy, Dimon said, stock and bonuses can be recovered from executives, even for exercising bad judgment. The policy has never been invoked, he said."
Dimon's prepared testimony is posted here.
The AP adds that "the start of the hearing was delayed by demonstrators in the room who shouted about stopping foreclosures. Another demonstrator shouted, 'Jamie Dimon's a crook." At least a dozen people were escorted from the hearing room."