One of America's most notorious oil executives has been selected by JPMorgan
to lead the internal inquiry into the $6 billion (pounds sterling 3.8 billion)
of trading losses run up by the so-called "London Whale".
Lee Raymond, a 73-year old who led Exxon from 1993 to 2005 will have the
final say on the probe and will rule on whether JP chief executive Jamie Dimon
handled the situation properly.
Raymond could impose various punishments on Dimon, including cutting his
pay. He got $23 million in 2011. Although Raymond is regarded as a friend and
mentor to Dimon he is also said to be fearlessly independent.
Raymond is best known for receiving an extraordinary retirement package
worth $400 million. That deal emerged in 2006, one year after Exxon made the
biggest profit of any company at $36 billion.
JPMorgan, until recently seen as one of the few major banks to have
escaped the financial crisis relatively free of scandal, has been on the back
foot ever since it emerged that one of its traders, Bruno Iksil, had taken
huge bets on credit derivatives that were seriously misjudged.
The losses on the portfolio at the London-based Chief Investment Office
have more than doubled from the $2 billion initially estimated.
According to the Wall Street Journal the panel will check the previous
findings of management and will interview company employees where necessary.
It will report back later this year.
