Dimon says bonuses can be recovered from executives who exercise bad judgment.
JPMorgan Chase CEO Jamie Dimon, head of the largest bank in the U.S., arrives today to testify on Capitol Hill before the Senate Banking Committee about how his company recently lost more than $2 billion on risky trades and whether its executives failed to properly manage those risks.
“It’s likely that there will be clawbacks,” Dimon told the Senate Banking Committee.Under bank policy, Dimon said, stock and bonuses can be recovered from executives, even for exercising bad judgment.
The policy has never been invoked, he said. The start of the hearing was delayed by demonstrators in the room who shouted about stopping foreclosures. Another demonstrator shouted, “Jamie Dimon’s a crook.”
At least a dozen people were escorted from the hearing room. Dimon appeared serene during the outbursts, which lasted several minutes. At another point before the questioning began, he gave a broad smile.
Dimon contended the trading loss, disclosed May 10 in a surprise conference call with reporters and banking analysts, was meant to hedge risk to the company and to protect in case “things got really bad.”
The trading loss has heightened concerns that the biggest banks still pose risks to the U.S. financial system, less than four years after the financial crisis in the fall of 2008.