Canaccord Genuity Morning Coffee on JPMorgan Chase (JPM): Please Speak Into The Recorder
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Price: $53.63 +1.15%
Rating Summary:
13 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
13 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade JPM Now!
Canaccord Genuity Morning Coffee on JPMorgan Chase (NYSE: JPM): Please speak into the recorder.
JPMorgan Chase CEO testified before a U.S. Senate Banking Committee regarding the recent trading losses of the company’s Chief Investment Office (CIO). Dimon said he was “dead wrong” when he dismissed media reports regarding potential losses at the office as a “tempest in a teapot” several months ago. Dimon called the losses an isolated issue, admitting that the bank took on too much risk, although the trades were put in place to reduce the bank’s overall risk. Losses were originally speculated to be in the $2-billion range initially, a number that has since climbed to $3 billion (or more). In his testimony, Dimon said that he still expects the bank’s current quarter to be profitable and that the losses are under control. When asked if the bank’s compensation created incentive for traders to take on additional risk, Dimon said he did not believe the compensation model posed that risk and suggested that there will be clawbacks on some of the traders’ compensation. He believes, “Traders did not have the requisite understanding of the risks they took,” and that they thought, “Losses were the result of anomalous and temporary market movements, and therefore were likely to reverse themselves.”
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JPMorgan Chase CEO testified before a U.S. Senate Banking Committee regarding the recent trading losses of the company’s Chief Investment Office (CIO). Dimon said he was “dead wrong” when he dismissed media reports regarding potential losses at the office as a “tempest in a teapot” several months ago. Dimon called the losses an isolated issue, admitting that the bank took on too much risk, although the trades were put in place to reduce the bank’s overall risk. Losses were originally speculated to be in the $2-billion range initially, a number that has since climbed to $3 billion (or more). In his testimony, Dimon said that he still expects the bank’s current quarter to be profitable and that the losses are under control. When asked if the bank’s compensation created incentive for traders to take on additional risk, Dimon said he did not believe the compensation model posed that risk and suggested that there will be clawbacks on some of the traders’ compensation. He believes, “Traders did not have the requisite understanding of the risks they took,” and that they thought, “Losses were the result of anomalous and temporary market movements, and therefore were likely to reverse themselves.”
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