JPMorgan Chase & Co. (JPM:US) investors overreacted to a $5.8 billion trading loss during the first half of this year and Chief Executive Officer Jamie Dimon is doing a “great” job, former CEO William B. Harrison said.
“It was disappointing to all of us that we had that kind of loss, but the important thing is to put it into perspective, which the market didn’t do very well,” Harrison, 69, said today in an interview on CNBC. “A lot of people overreacted to it.”
JPMorgan, the biggest U.S. bank by assets, is under investigation by at least 11 agencies, including the U.S. Justice Department and Securities and Exchange Commission, for the loss at the London chief investment office. The firm’s market value has dropped by about $28 billion since Bloomberg News first reported on April 5 that the lender had amassed an illiquid position on credit derivatives.
Harrison, who retired from JPMorgan in 2006 after four decades at the New York-based bank, said companies and employees need to be able to make occasional mistakes and that he “couldn’t be more proud” of that job that Dimon, 56, is doing.
“JPMorgan came through the financial crisis as we all know without making a significant mistake,” Harrison said. “It’s extraordinary that Jamie and team were able to manage it that way.”
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