JPMorgan to point finger at CEO

JPMORGAN Chase & Co's board will consider releasing an internal report this week that faults the oversight of the chief executive, Jamie Dimon, of a division that lost more than $US6.2 billion ($5.9 billion) on botched trades, sources say.

JPMORGAN Chase & Co's board will consider releasing an internal report this week that faults the oversight of the chief executive, Jamie Dimon, of a division that lost more than $US6.2 billion ($5.9 billion) on botched trades, sources say.

The final report, which builds on a preliminary analysis released in July, was critical of Mr Dimon, 56, former chief financial officer Doug Braunstein, 51, former chief investment officer Ina Drew and others for inadequately supervising traders in a British unit that built up a large and illiquid position in credit derivatives last year, the sources said.

The report, which is not yet finished, will be presented to the board when it meets on Tuesday.

The directors will then vote on whether to release it to the public when the bank announces fourth-quarter earnings the following day, the sources said, asking not to be named because the report is not yet public.

Joe Evangelisti, a spokesman for the New York bank, declined to comment on the report's findings and said that each member of the board had also declined to comment.

British regulatory authorities have asked the bank to keep its findings private until they can ensure it adheres to European privacy laws that protect individuals, one of the sources said. The report describes executives at JPMorgan and their role in the loss.

The bank's analysis in July said that London traders may have intentionally mismarked some of their positions and sought to hide the full amount of their losses.

Bruno Iksil, a British trader nicknamed the London whale because his trading book was so large, made a wrong-way bet on credit derivatives that led to the company's single biggest trading loss. At one point, as much as $US51 billion in shareholder value was wiped out.

The bank has come under increasing scrutiny and regulatory oversight in the aftermath of the housing crisis.

The trading debacle is under investigation by the US Justice Department, Federal Bureau of Investigation and the Securities and Exchange Commission, among other agencies. The Office of the Comptroller of the Currency may sanction the bank as early as Monday for lax anti-money laundering controls, according to a person familiar with that investigation.

Separately, JPMorgan agreed in a deal announced last week to pay $US2 billion, on top of $US5.29 billion assessed against it last year, to settle mortgage abuse charges by the Federal Reserve and OCC.

Related Articles