There have been many reports over the last few days stating that JPMorgan Chase is considering releasing an internal report blaming their current CEO, Jamie Dimon, for more than $6b in trading losses in the UK. Now, this is either a billiant strategic move by Dimon to accept all accountability for the losses, or one of the single worst decisions ever made by an organization.
If it is the former, then I give Mr. Dimon and JPMorgan Chase all the credit in the world for taking on full accountability for this huge mistake and providing full disclosure. However, based on what we generally see in the corporate world, I will assume it is the latter.
This report blames the CURRENT CEO, plus a number of former executives. Mr Dimon is still running the business. Transparency is one thing, but throwing your CEO under the bus is another. This report, if released, will put Mr. Dimon through the ringer and likely permanently damage his credibility. I don’t know what’s in the report, but I imagine it’s not flattering for Mr. Dimon.
I can’t see how he can effectively function as CEO after the report is released. How will the people that work for him view him after reading the report? What about investors and business partners?
The board of JPMorgan Chase might want to think long and hard before releasing this report. Customers can be very forgiving and I wonder if a sincere apology, where they take full accountability (instead of blaming others) for the losses, explain what happened, what steps they have taken to ensure it never happens again and vow to do whatever it takes to make things right, would be more effective.