On Air Now

Upcoming Shows

Program Schedule »

Tune in to Listen

650 AM Hibbing, Minnesota

Weather

Current Conditions(Hibbing,MN 55746)

More Weather »
49° Feels Like: 46°
Wind: SSE 7 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Tonight

Rain to Wintry Mix/Wind 30°

Tomorrow

Ice to Rain/Wind 54°

Sat Night

Partly Cloudy 32°

Alerts

JPMorgan weighs actions on internal "Whale" probes: reports

The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York October 2, 2012. REUTERS/Shannon Stapleton
The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York October 2, 2012. REUTERS/Shannon Stapleton

(Reuters) - JPMorgan Chase & Co may release on Wednesday additional results of internal probes into its $6.2 billion "London Whale" trading loss that could lead to a lower bonus for CEO Jamie Dimon, according to published reports.

On Wednesday the bank, the biggest in the United States by assets, is scheduled to report fourth-quarter and full-year results following a meeting of the board of directors on Tuesday.

The board, which started its own review of the loss after it was revealed in May, plans to review bonuses for 2012 and is expected to dock Dimon's and that of Doug Braunstein, who was chief financial officer at the time of the debacle, the Wall Street Journal reported on Saturday, citing unnamed sources.

The company is to release results from the board's probe, as well as a report of more than 50 pages on an internal investigation, the Journal said on its website.

Bloomberg News reported that the board will consider on Tuesday whether to release the internal report.

JPMorgan spokesman Joe Evangelisti said Dimon, Braunstein and each of the directors declined to comment.

In July, the company used a previously scheduled conference on its results also to discuss findings about the loss. Executives said then that the internal probe had found evidence that traders had tried to hide the full amount of the loss and that top managers had failed in supervision of risk controls.

Dimon said last year that other members of the board, of which he is chairman, would consider the loss and findings from its own investigation when deciding his total pay for 2012.

Dimon was paid $23.1 million in 2011.

Hundreds of lawyers have been involved in the investigation and in responding to questions put to the bank by regulators and law enforcers in the United States and Britain.

The loss is known for the "London Whale" nickname that hedge funds gave to JPMorgan trader Bruno Iksil for the large size of positions he established from London for the company's Chief Investment Office. The trade, made with credit derivatives, became too big for the company to exit easily.

The loss has been a major embarrassment for Dimon. It set back efforts by him and other bankers to cool the resolve of regulators and politicians to tighten controls on trading by large financial institutions.

In April, Dimon dismissed press reports of potential losses from the London Whale as a "tempest in a teapot". A month later, he recanted and apologized.

(Reporting by David Henry in New York; Editing by Dale Hudson)

Comments