June 13th, 2012
11:07 AM ET

Who is JPMorgan CEO Jamie Dimon?

The CEO of JP Morgan Chase & Co., James Dimon, is testifying before the Senate Banking, Housing and Urban Affairs Committee on Wednesday after a $2 billion trading loss in early May.

He told Congress that the massive loss can be blamed on traders misunderstanding the bets they placed and insufficient risk controls, according to CNN Money.

Dimon, who is also chairman of the nation's largest bank, was invited to speak before the committee in May. The hearings are investigating the loss from a regulatory angle. JP Morgan made its multibillion-dollar blunder due to "negative carry trades," according to CNN Money.

The hefty trading loss led to the departure of JP Morgan's chief investment officer and forced Dimon to apologize for the "terrible mistake." Days later, he spoke to shareholders at the company's annual meeting and had his $23 million pay package approved - the same shareholders who have seen the company's stock decline by more than 14% over the previous five trading sessions.

Ironically, the shareholders used this kind of meeting regularly after the 2008 financial crisis to push reform agendas because of increased scrutiny directed at the nation's largest banks. Yet, after the loss, shareholders still approved Dimon's $23 million in compensation as chairman.

The FBI said May 16 that it was opening a preliminary investigation into the loss.

In 2010, Dimon was referred to as "America's least-hated banker" in a New York Times article. So what happened?

Here's a look at Jamie Dimon and the timeline leading up to his testimony in Congress.

Who is Jamie Dimon?

-Born: March 13, 1956; New York

-Parents: Theodore, a stockbroker, and Themis Dimon

-Sibling: A twin brother, Theodore "Teddy"

-Spouse: Judith "Judy" Kent Dimon (May 1983-present)

-Children: Julia, Laura and Kara Leigh

-Education: Tufts University, B.A. 1978

Harvard University, M.B.A. 1982

Timeline:

-1982-85: Assistant to President Sandy Weill at American Express.

-1996-97: Chairman and CEO of Smith Barney.

-1997-98: Co-chairman and co-CEO of Salomon Smith Barney Holdings.

-1998: President of Citigroup. Dimon is forced out of the company after a falling-out with longtime mentor Weill.

-2000-04: Chairman and CEO of Bank One Corporation.

-2004: Becomes president and chief operating officer of JPMorgan Chase & Co. when it merges with Bank One Corporation.

-December 31, 2005: Assumes title of chief executive officer and president at JPMorgan Chase & Co., effective January 1, 2006.

-December 31, 2006: Named chairman of the board at JPMorgan Chase & Co, effective January 1, 2007.

-May 10, 2012: On a conference call, reveals that a trading portfolio that was designed to help JPMorgan Chase hedge its credit risk lost $2 billion and could lose $1 billion more.

-May 15, 2012: Apologizes to JPMorgan & Chase shareholders at the annual meeting. Shareholders approve Dimon's $23 million pay package, and preliminary results show that only 40% support a proposal that calls for the appointment of an independent chairman.

-May 17, 2012: Senate Banking Committee announces that Dimon has been invited to appear before the committee at hearings looking into the JP Morgan trading losses from a regulatory angle.

Follow the story as it unfolds:

Dimon: 'I can't publicly defend the trade'

Live blog: Dimon in the hot seat

soundoff (45 Responses)
  1. Jack from Mn

    Jamie is a great CEO who is managing through this media and political attack campaign with honesty and grace. JPM was trying to hedge against a financial crisis, but the traders and supervisors closest to the hedge made mistakes in judgement and design that backfired when hedge funds moved the market against JPM. The US is lucky to have JPM and Jamie Dimon as it's CEO. This situation has been taken out of context by reporters and politicians who have no knowledge of what happened.

    June 14, 2012 at 9:36 am | Report abuse | Reply
    • Dave

      Jack what are you smoking. The so called hedge was placed on an index for credit default swaps. It was a leveraged gamble. That is why Diamond Dave is sitting before Congress like scolded school boy. It was a position that only a New Orleans pimp would put his bank into, and thus the outrage from the American people.

      June 14, 2012 at 11:13 am | Report abuse |
    • Couldbe49

      How exactly does one take the loss of $2B "out of context'? Why do we repeatedly have CEOs who never seem to know when poor decisions are made by those they supervise? I don't believe it.
      Just maybe the answer lies in the approval to the $23M pay package. How about some kind of accountability? These guys are out of control, and there's pretty much nothing anyone can do about it. Please don't take this out of context.

      June 14, 2012 at 12:50 pm | Report abuse |
  2. dazzle ©

    Dimon, Corzine, Bernanke, Greenspan, and the rest of the arch fiend "banksters" are who is really running this country into the ground. When the JP Morgan crisis was first released to the press, many of my employees who were on extended federal benefits were cut off without notification and could not access the states unemployment website or phone lines. An accident, I don't think so.

    June 14, 2012 at 10:46 am | Report abuse | Reply
  3. Obama Mama

    OOPS! A 2 billion dollar "mistake" (maybe 1 billion more) on his watch and the board gave him a raise. How many of us working middle class work all year and in our evaluation for a raise was late once, made 1 mistake once in a year and denied a raise. This is pretty much bull mularky. He deserved to be terminated without the millions of dollars of severance pay and perks.

    June 14, 2012 at 10:56 am | Report abuse | Reply
  4. james ainoris

    Many jealous people.... government must oversee but not limit capitalism. Of course there are abuses and cheating insider trading... this has always been part of capitalism. I have lived through three economic downturns and the only thing that worked was freeing up capital and investments by lowering taxes on buisiness . I was just out of high school when the "carter years" started....ng! Also, why are we giving any money to countries that hate us? or manufacturing jobs to communist china? This is what you should be screaming about.... no democrat or republican talks about bring jobs backk to america! why? because american corps are using chinese people and low wages no unions or safety environmental laws... they want china s pla to maintain current status for low mfg costs! Our brains have been removed by wal mart black ops...lol The only thing that is still made in usa is chinese food take out....lol. Lets hope these wall street peeps keep buying american mansions and yachts etc. Tax them and we lose .

    June 14, 2012 at 4:13 pm | Report abuse | Reply
  5. MannyZ

    Everyone get a nice feeling seeing a good looking man, espcialy if he reflect honesty and grace, but it is all a mask.
    This man is a greedy insensative CEO who missmanage his work for his personal pleasure. This man belongs in jail

    June 15, 2012 at 11:27 am | Report abuse | Reply
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