Dimon apologizes to shareholders for "whale" loss

Wed Jan 23, 2013 12:02pm EST

JPMorgan Chase & Co CEO Jamie Dimon speaks about the state of the global economy at a forum hosted by the Council on Foreign Relations (CFR) in Washington October 10, 2012. REUTERS/Yuri Gripas

JPMorgan Chase & Co CEO Jamie Dimon speaks about the state of the global economy at a forum hosted by the Council on Foreign Relations (CFR) in Washington October 10, 2012.

Credit: Reuters/Yuri Gripas

(Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon apologized to shareholders for the $6 billion loss caused by the so-called "whale" trade, calling it a "terrible mistake," but said the bank has moved on and is still highly profitable.

"If you're a shareholder of mine, I apologize deeply," Dimon said at a presentation at the World Economic Forum in Davos, Switzerland. "But we had record results and life goes on."

Despite a $6.2 billion loss from bad trades in JPMorgan's chief investment office last year, the bank still managed to earn a record $21.3 billion in 2012.

JPMorgan Chase is the largest U.S. bank, with $2.36 trillion in assets as of December 31. Its chief investment office has since been restructured and traders and executives involved with the bad trade - referred to as the "whale" trade after the nickname of a London-based trader involved - were dismissed.

After an internal review, Dimon's bonus was cut in half to $11 million for 2012.

(Reporting by Lauren Tara LaCapra; Editing by David Holmes)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
tmc wrote:
Really! It’s got to be the “Management Hair” as Scott Adams would put it.

Jan 23, 2013 6:40am EST  --  Report as abuse
Harry079 wrote:
“But we had record results and life goes on.”

With an $11 millon bonus I guess life does go on.

For some people.

Jan 23, 2013 10:50am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.