Aug 20 (Reuters) – JPMorgan Chase & Co has picked
Lee Raymond, ex-chief executive of oil major Exxon Mobil Corp
, to head an inquiry into losses in a credit derivative
portfolio run by its London-based Chief Investment Office (CIO),
the Wall Street Journal reported.
The company also appointed William Weldon – chairman of
Johnson & Johnson – and real estate developer Laban
Jackson to the inquiry panel, the business daily said, citing
people close to the probe.
Raymond, 73, was chief executive and chairman of Exxon from
1993 to 2005 and was already an independent director of the
bank, among other positions.
The panel, which will double-check the previous findings of
management and will interview company employees where necessary,
is not expected to complete its review until late fall or early
winter, the sources told the Journal.
JPMorgan, whose $2.29 trillion of assets make it the biggest
U.S.-based bank, has been fighting to reclaim its reputation
after the CIO built up a massive credit derivatives portfolio
that had trading losses of nearly $6 billion.
The losses from the bets, known as the “London Whale” trades
after the nickname of one of the CIO’s traders, were a huge blow
for the bank’s CEO Jamie Dimon, long praised for his
risk-management skills.
JPMorgan was not available for comment on the appointments
to the panel outside regular business hours.
