The fat lady is singing...
Dimon Risk Reputation on Line as JPMorgan Faces Analysts
By Dawn Kopecki - Jul 10, 2012 10:18 PM ET
Jamie Dimon will seek to restore investor confidence this week after a trading loss wiped out $39 billion of JPMorgan Chase & Co. (JPM)’s market value and marred his reputation as one of the industry’s best risk managers.
In a departure from his customary earnings-day conference call, Dimon will meet analysts for two hours on July 13 at the bank’s New York headquarters to field questions about the loss and what he’s doing to contain the damage. The firm also is being probed over the possible gaming of U.S. energy markets and was subpoenaed in global investigations of interest-rate fixing.
There has been a “sudden change of perception in the company,” said Nancy Bush, an analyst and contributing editor at SNL Financial LC, a research firm based in Charlottesville, Virginia. “I’ve been watching banks for 30 years now and when they lose the luster, it is extremely hard for them to get it back, particularly when you have someone who was built up and lionized like Dimon.”
Bush said the 56-year-old chief executive officer did an “admirable job of saying nothing” when he appeared before Congress twice last month to testify about the trading loss, which stemmed from bets on credit derivatives at the firm’s chief investment office in London. “But I don’t know if that can go on,” Bush said.
JPMorgan intends to reclaim millions of dollars in stock from executives involved in the trading loss, including former Chief Investment Officer Ina Drew, and may disclose those details as early as July 13, when the company announces second- quarter results, the Wall Street Journal reported, citing people familiar with the firm’s plans.
more:
http://www.bloomberg.com/news/2012-07-11/dimon-risk-reputation-on-line-as-jpmorgan-faces-analysts.html
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