| WASHINGTON, March 14
WASHINGTON, March 14 JPMorgan Chase & Co
frequently clashed with its main regulator as the bank's losses
from bad credit trades mounted last year, a Senate report said.
The dysfunctional relationship between JPMorgan and the
Office of the Comptroller of the Currency, which oversees the
regulated bank subsidiary of JPMorgan's holding company, went
all the way to the top of the bank, according to the report.
In January and February, JPMorgan Chief Executive Jamie
Dimon ordered the bank to stop sending daily trading profit and
loss reports to the OCC, according to the report from the
Senate's Permanent Subcommittee on Investigations, citing the
OCC's main JPMorgan examiner.
A spokeswoman for JPMorgan declined to comment.
The bank told the OCC that it was stopping the reports
because they provided too much information, as well as to
prevent the leak of data, the report said. When the OCC asked
for the data again, Chief Financial Officer Doug Braunstein
provided it. The profit and loss reports stopped for less than a
week, according to the Senate report.
At a later meeting, when Dimon learned that Braunstein had
resumed supplying the reports to regulators, the CEO shouted at
the CFO in anger, the report said, citing the OCC examiner.
Braunstein stepped aside as chief financial officer earlier
this year to become a vice chairman at JPMorgan. The long-time
investment banker was replaced by Marianne Lake, previously CFO
of the bank's retail branch network.
The bank frequently pushes back on OCC findings and
examinations, according to the report. At one point, bank
employees yelled at OCC regulators and called them "stupid." In
early 2012, when a junior OCC examiner went to a meeting that he
thought would be with his counterpart at the bank to discuss the
results of an examination, he was instead met by all the heads
of risk divisions of the bank, who criticized the OCC's findings
in a "loud" and "combative" tone, the report said, citing an
interview with the examiner.
JPMorgan Chase loss more than $6 billion last year after
making a series of wrong-way bets in credit derivatives