The board of directors for JPMorgan Chase & Co. (JPM) has voted to release the so-called London Whale report, a more than 50-page document detailing the bank’s failings in the incident, which resulted in more than $6 billion in losses last year.
JPMorgan Chase & Co. (NYSE:JPM)’s board of directors has voted to release the internal report on the botched trades which cost the bank over $6 billion. The report on the incident is more than 50 pages long, and it’s the culmination of the investigation by the company’s former CFO Mike Cavanagh. The decision to release it comes on the heels of reports that JPMorgan Chase & Co. (NYSE:JPM) will face enforcement action in the U.S. and the U.K. over the incident.
The bad trades involved bets made by the trader known as the London Whale. They originated in JPMorgan Chase & Co. (NYSE:JPM)’s Chief Investment Office, which included some very aggressive traders. They built up a massive position that ended up distorting the credit market.
DealBook cites an anonymous source who said some members of the bank’s board were concerned about releasing the report because it indicates problems with supervision and controls. Also board members were concerned that lawyers for plaintiffs in cases related to the incident might use the report in their arguments. However CEO Jamie Dimon said that they should release the report, which will likely indicate that former CFO Douglas Braunstein was lax in monitoring the trades of those in the bank’s Chief Investment Office.
In addition to voting to release the London Whale report at today’s board meeting, the board also discussed whether to reduce Braunstein’s and Dimon’s bonuses. DealBook reports that Dimon’s annual payout could be reduced by up to 20 percent. It also notes that he was the highest paid CEO in the banking industry in 2011.
JPMorgan Chase & Co. (NYSE:JPM) is scheduled to release its earnings report tomorrow.