Contact: Matthew Sweeney, (212) 669-3747 July 13, 2012
LIU STATEMENT ON JPMORGAN LOSSES AND CLAWBACKS
NEW YORK, NY – City Comptroller John C. Liu stated the following in response to JPMorgan’s announcement that reckless trading has cost it nearly $6 billion and that it will seek to clawback two years of compensation from those responsible:
“As long-term shareowners, we are pleased by JPMorgan’s commitment to aggressively exercise its clawback policy. Those responsible for reckless risk-taking and their supervisors must be held financially accountable down to the last penny. The maximum possible clawback will help restore damaged shareowner confidence and send the message that there are no rewards for wild and excessive gambling with investors’ money. On the other hand, it is disheartening that the bank now states its losses are much higher than the $2 billion it first reported, leaving shareowners to wonder how deep this hole will turn out to be.”
Earlier this year, JPMorgan concluded a dialogue with the NYC Pension Funds and the Comptroller’s Office with an agreement to clarify that its compensation clawback policies will not only hold executives but also their supervisors, accountable for engaging in excessive risk.
Clawback proposal announcement:
Correspondence on settlement of clawback proposal:
Previous statement on JPMorgan clawbacks:
New York City Comptroller John C. Liu serves as the investment advisor to, custodian and trustee of the New York City Pension Funds. The New York City Pension Funds are composed of the New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund and the Board of Education Retirement System.