JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon “inflamed” public debate over a trade in London that has so far cost at least $2 billion, BlackRock Inc. CEO Larry Fink said.
Dimon has represented the bank “fantastically” in the past, “but I think in this case I think he enlarged the issue,” Fink, whose company is the world’s biggest money manager, said in an interview today on CNBC.
Dimon dismissed press reports in early April that the bank’s chief investment office had built up an illiquid position in credit derivatives, calling them a “tempest in a teapot.” He recanted after the bank on May 10 disclosed the loss, which he said could grow by $1 billion or more. Dimon later said his previous comments were “dead wrong.”
“It became inflamed somewhat by the reaction by JPMorgan,” Fink said. “I don’t think it’s a big issue. I think it may be more costly than $2 billion as they unwind it.”