How do you say sorry for losing $2 billion? Jamie Dimon, CEO of JP Morgan Chase seems to have got it right. With a remorseful mea culpa, he announced last week a blow-out trading loss from credit derivatives. From one of the banks least scathed by the 2008 financial crisis, JPM’s surprise market malfunction was announced with aplomb.
The previously revered Jamie Dimon and his firm blamed the losses on “errors, sloppiness and bad judgment” and ominously warned, “it could get worse”. Was this the same issue that had been raised in April but Dimon then dismissed as “tempest in a teacup”? In a TV interview he said he was “dead wrong” to have dismissed earlier concerns.
In PR terms, so far so good but now the tough part. For the CEO who has been the industry spokesperson against regulation and in particular trading restrictions proposed by the Volcker Rule, future lobbying efforts will now be muzzled (or at least should be). Having cavalierly dismissed the notion of “too big to fail” as “non factual” he has at least temporarily, lost the PR right to belittle proposed oversight rules and restrictions.
The PR Verdict: “B” for JP Morgan Chase and Jamie Dimon. From an industry that has lost its halo, the PR strategy to explain an “oops we did it again” $2 billion loss was well handled. The challenge is what to say next.
PR Takeaway: No one likes a smarty pants. Sunday’s NYTimes quoted a recent dinner in Dallas where Dimon was talking to valued clients about the much-discussed Volcker rule and its restrictions. Dimon, allegedly imperious and heavy-handed, dismissed the debate as “infantile”. He now needs to take a more humble and conciliatory tone. With an uncapped trading loss of $2 billion dollars, the assumption that he and the industry know best, has well and truly hit the skids.
To read more click here.
What’s your PR Verdict?