JPMorgan Chase (JPM) Chief Executive Officer Jamie Dimon enjoys a reputation as a risk-averse manager who conducts exhaustive reviews of operations in every corner of the bank. Not always, it turns out. Long before traders there racked up at least $2 billion in losses, executives at JPMorgan voiced concern over activities of the bank’s chief investment office (CIO). Dimon repeatedly declined to subject the office to additional scrutiny and control.
Dimon treated the CIO differently from other JPMorgan departments, exempting it from the rigorous scrutiny he applied to risk management in the investment bank, according to two people who have worked at the highest executive levels of the firm and have direct knowledge of the matter. When some of his most senior advisers, including the heads of the investment bank, raised concerns about the lack of transparency and quality of internal controls in the CIO, Dimon brushed them off, says one of the people, who asked not to be identified because the discussions were private.
Every once in a while Bloomberg does a decent expose for those on the Mayor’s Enemies List. Dimon must have pissed off Hizzoner.
– Lee Adler