The Top 10 Reputation Crises of 2013

By Suzanne Woolley and Ben Steverman - 2013-11-15T18:07:38Z

Simon Dawson/Bloomberg

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No. 7: JPMorgan Chase and The London Whale

Last year’s $6.2 billion loss by the trader known as the London Whale kicked off JPMorgan Chase & Co.'s travails -- and the hits kept coming. A scathing March 2013 Senate report criticized Dimon and said the bank misled investors and dodged regulators as losses mounted. Then on Nov. 2, the bank said that the U.S. Department of Justice is conducting at least eight separate investigations into its activities. The steady drumbeat of difficulties and chance they could bring a higher level of regulatory action and enforcement convinced Diermeier to put the bank on his 2013 list. The London Whale incident raised broader concerns over risk management processes and culture, he says, and the concerns get more acute as problems multiply. JPMorgan Chase has a tentative $13 billion settlement with the Justice Department over the bank's mortgage bonds. A company spokesman declined to comment. 

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