After announcing a $2 billion loss on the mishandling of a derivative portfolio, JPMorgan Chase (NYSE: JPM) CEO, Jamie Dimon, says his bank reacted badly to warning flags last month that it had losing trades.
He says in an interview with NBC’s “Meet the Press” that instead of acknowledging the merit of questions surrounding the trades, JPMorgan execs reacted unjustifiably:
“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 a while. So it wasn’t just any one thing.”
He says that the mistake isn’t “life threatening” and that JPMorgan is “still going to earn a lot of money this quarter.” But the blunder has investors worried nonetheless, as the stock is down over four points since the announcement.