Contact: Mike Loughran, (212) 669-3747 June 28, 2012
NEW YORK, NY – City Comptroller John C. Liu issued the following statement on the news that the trading loss suffered by JPMorgan could be much larger than $2 billion:
“Reports that the potential loss from JPMorgan's reckless trading could be much greater than the original estimate is a costly reminder of why investors demand both stricter financial regulation and more responsible corporate practices. Although JPMorgan has said that clawbacks are likely, restoring investor confidence will require decisive actions, not just words. The Board must demonstrate that it is serious about holding those responsible for this loss financially accountable by disclosing the details of clawback actions taken, if even any. The Board cannot afford to drag their feet on clawbacks.”
Background on Clawbacks:
Clawback policies enable a company to reclaim compensation paid to an employee under certain circumstances. The circumstances can include the restatement and downward revision of the historical financial results on which the payments were originally based, as well as acts or omissions by an employee that cause significant financial or reputational harm to the company. All forms of compensation can be subject to clawback, but clawback policies typically apply to incentive compensation such as cash bonus and equity awards.