Dimon Says London Loss Is Weakness Not Leadership Issue: Exame
Jamie Dimon said JPMorgan Chase & Co. (JPM)’s $6.2 billion loss at its London investment office reflects a “weakness” and not a culture or leadership problem, Exame reported, citing an interview with the chief executive officer.
Dimon told Exame, Brazil’s biggest business magazine, that analysts are still predicting a third straight record year for earnings at the New York-based bank, even after factoring in the loss. JPMorgan, the largest U.S. lender by assets, will report net income of about $20.8 billion for 2012, according to a Bloomberg survey of 12 analysts.
JPMorgan ousted traders and managers and overhauled senior management amid more than $6.2 billion in losses tied to credit derivatives in the first nine months of 2012 at the chief investment office in London. Fallout included the retirement of Chief Investment Officer Ina Drew, lawsuits from shareholders and civil and criminal probes by at least three U.S. agencies.
Dimon, 56, also said the U.S. economy could expand as much as 4 percent next year if Democrats and Republicans agree on fiscal reforms that increase taxes, cut costs and improve the business environment, according to Exame. A worsening European crisis or the development of a new geopolitical problem would mean slower growth, he said.
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