July 13, 2012
WASHINGTON, DC – Today, Senate Banking Committee Chairman Tim Johnson (D-SD) released the following statement after JPMorgan Chase and Company (JPMorgan) announced it would claw back compensation from employees involved in the massive trading loss at its Chief Investment Office. In June, Chairman Johnson called JPMorgan’s CEO Jamie Dimon to testify on the trading loss and pressed him at the hearing to seek clawbacks from those responsible.
“While details are still forthcoming, JPMorgan’s announcement today that it will claw back compensation from employees responsible for the massive trading loss and poor risk management is welcome news. It shouldn’t take a congressional hearing for JPMorgan to realize that bank employees should not be rewarded for excessively risky behavior, and the bank should hold everyone involved in this blunder accountable.
“In addition to punishing those responsible, compensation clawbacks serve as a deterrent for other employees who might ignore risk management policies in the future. To help restore confidence in our financial system, Wall Street banks should use this effective tool whenever it is appropriate.”