JPMorgan Chase CEO Jamie Dimon says his bank reacted badly to warning flags last month that it had losing trades in complex financial derivatives.
On Thursday Dimon announced that the bank had lost $2 billion or more mishandling a portfolio of derivatives.
In an interview with NBC's Meet The Press, Dimon says bank executives got it wrong when they were challenged over the trades in media reports.
. (SOUNDBITE) (English) JPMORGAN CHASE AND CO CEO JAMIE DIMON SAYING :
"If you look back from today, there were other red flags. That particular red flag, you know, we made a mistake. We got very defensive. And people started justifying everything we did. And, you know, the better thing in life is to say, "Maybe you made a mistake, let's-- let's dig deep. And the
mistake had been brewing for awhile. So it wasn't just any one thing."
He says it was a mistake but will not take down the bank.
. (SOUNDBITE) (English) JPMORGAN CHASE AND CO CEO JAMIE DIMON SAYING :
"This is not a risk, which is life threatening to J.P. Morgan. This is a stupid thing that is-- you know, that we should never have done, but we're still gonna earn a lot of money this quarter. So it isn't like the company's jeopardized. We-- you know, we hurt ourselves and our credibility, yes. And that we-- we gotta fully expect and pay the price for that.
JPMorgan emerged from the financial crisis that began in late 2008 with the best reputation among big U.S. banks for identifying risk and for staying away from the pitfalls.
The revelation of the trading loss is already unleashing calls in Washington to get tougher on big banks.
Deborah Lutterbeck, Reuters
