Dimon Says Overconfidence Fueled Loss He Can’t Defend
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JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said overconfidence in trusted managers allowed traders to accumulate more than $2 billion in losses through a strategy that “violated common sense.”
Risk-monitoring systems and executives at the largest U.S. bank failed to adequately police threats concentrated in a derivatives portfolio at a London unit of the chief investment office, he said. The division wasn’t subjected to the same scrutiny as other businesses, and managers there deviated from control procedures, even after triggers on risk limits were breached, Dimon told the Senate Banking Committee yesterday.