Live Coverage of Dimon's Testimony on Capitol Hill

By Donal Griffin and Jesse Hamilton - 2012-06-13T14:48:54Z

JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said the bank will probably seek to claw back pay from executives responsible for $2 billion in trading losses.
“When the board finishes its review, which is the appropriate time to make those decisions, you can expect that we will take proper corrective action and it is likely there will be clawbacks,” Dimon told the Senate Banking Committee today in Washington.
Lawmakers are questioning Dimon on the trading loss amid investor criticism of Wall Street pay practices. Dimon encouraged the Chief Investment Office to make bigger and riskier trades, former employees have said, while he became one of the highest-paid CEOs in U.S. banking, taking home more than $1.9 million a month on average in 2010 and 2011.
“The board will review every single person involved in this case and figure out what’s appropriate,” Dimon said. The clawbacks would be “somewhat limited” to what employees were paid in the previous two years, he said.
The loss arose from “egregious mistakes” in trades of credit derivatives, Dimon said May 10. Shares have fallen 17 percent since then through yesterday.
The JPMorgan board awarded Dimon $23 million in salary and bonuses for his performance in 2011. Ina Drew, who oversaw the CIO, received $14 million for 2011. The bank said May 14 that she would retire.
To contact the reporter on this story: Donal Griffin in New York at [email protected]
To contact the editors responsible for this story: Maura Reynolds at [email protected]; David Scheer at [email protected]
Enlarge image JPMorgan CEO Jamie Dimon

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., takes his seat as he arrives to a Senate Banking Committee hearing in Washington, D.C. on June 13, 2012.



Jamie Dimon, chief executive officer of JPMorgan Chase & Co., takes his seat as he arrives to a Senate Banking Committee hearing in Washington, D.C. on June 13, 2012. Photographer: Jonathan Ernst/Bloomberg


June 13 (Bloomberg) -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said “it’s likely” there will be clawbacks of pay from executives responsible for $2 billion in trading losses. Dimon testifies before the Senate Banking Committee. (This is an excerpt. Source: Bloomberg)


June 13 (Bloomberg) -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon says "CIO asked the traders to reduce taking risks" in March of 2011. Dimon testifies before the Senate Banking Committee in Washington. (This is an excerpt. Source: Bloomberg)


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