Issue of the week: Jamie Dimon’s Whale nightmare

The CEO of JPMorgan Chase is in hot water after a Senate report revealed that he had signed off on risky deals made by a London trader.

“Will the London Whale swallow Jamie Dimon?” asked John Cassidy in NewYorker.com. The CEO of JPMorgan Chase is in hot water after a Senate subcommittee report revealed last week that he had signed off on risky deals made by a trader known as the “London Whale.”Dimon also“misled investors and the public” about the trades, which cost the bank $6 billion last year. The Justice Department and the FBI are ramping up an investigation of the case, and while Dimon himself isn’t suspected of any criminal wrongdoing, “there can be no doubt that his career is on the line.” Dimon has long been Wall Street’s golden boy—“the magazine-cover star who, when many of his rivals were crashing and burning during the financial crisis, guided his bank through it all, mostly unharmed.” A federal indictment could quickly change all that. “If the feds were to indict any senior JPMorgan executives on charges arising from the Whale’s trades,” the banking star’s “position could rapidly become untenable.”

So much for the reign of “Good King Jamie,” said Heidi Moore in The Guardian (U.K.). Dimon has long been seen as “the statesman of the financial sector.” Although he denied having much personal knowledge of how the London Whale trades occurred, he reacted to the crisis swiftly and apologetically. His pay cut last year—reducing his bonus in half, to $11.5 million—“showed that Dimon was willing to take the pain like everyone else.” But testimony last week by other bank officialsleft chinks in his armor. Their accounts of his bullying, panicking, and willful “misleading of regulators and the public” make Dimon look bad. “It changes the narrative significantly to see that he engaged in bad behavior himself.”

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