NEW YORK ( TheStreet) -- It was like listening to Darth Vader apologize for embracing the dark side.
JPMorgan Chase (JPM) Chairman and CEO Jamie Dimon said during the company's April 13 first quarter conference call a series of news articles about massive risk-taking in its Chief Investment Office was a "tempest in a teapot."
|JPMorgan Chase CEO Jamie Dimon|
Less than a month later, that same unit just posted a $2 billion loss on existing trading positions as JPMorgan was forced to revise the trading unit's Value at Risk--a measure of risk-taking-- by nearly 100%, raising it from 67 to 129.Dimon has been the most vociferous, credible critic of proposed tough new rules aimed at reducing risk in the banking system... until Thursday. In one fell swoop, that credibility went out the window as he admitted a "hedging strategy" executed by the bank was "flawed, complex, poorly reviewed, poorly executed and poorly monitored. The portfolio has proven to be riskier more volatile and less effective as an economic hedge than we thought," he said. Needless to say the
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