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Since it was revealed that JPMorgan Chase (NYSE:JPM) trader Bruno Iksil — now known as the London Whale — racked up a $6.2-billion loss from outsize derivatives trades last year, critics have been calling for Chief Executive Officer Jamie Dimon to resign.
In the hearing held by the Permanent Subcommittee on Investigations to determine how the bank was able to rack up such massive losses, Senators reserved their harshest criticism for Dimon, who signed off on a change to an internal alarm system that underestimated the losses and even briefly withheld some of the details from regulators. For a short time in 2012, JPMorgan stopped providing profit and loss reports for its investment bank to the Office of the Comptroller of the Currency.
Following the hearings, the clamor for his resignation grew.
Throughout most of his time in the financial world, Dimon has developed a reputation as an astute manager of risk, but with these revelations, that description seems a little less accurate, as The New York Times noted last week. However, JPMorgan’s board has determined that he will maintain his position as chairman and as chief executive, although members did decide last year to cut his pay in half for failing to adequately supervise the investment unit where the losses originated…
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