Friday, June 29, 2012
Bigger And Bigger Blow To Reputation
Nearly lost among the hoopla of the Supreme Court health care decision yesterday was the news that JP Morgan's trading loss had doubled, possibly tripled. Apparently, unwinding the bad trades is taking longer than expected. So now, CEO Jamie Dimon has more explaining to do to shareholders and possibly, Congress again. It is humbling for him and for the reputation of the bank, which had come through the economic meltdown strongly. It also undercuts the bank's opposition to pending regulations on trading. I'm sure Dimon's fellow bank CEOs are supportive, but what must they be thinking? Dimon had served as the spokesperson for the industry during the bad times, and now he is the subject of headlines. One's reputation is never safe.
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