CEO Jamie Dimon, who admitted JP Morgan had made 'egregious mistakes', issued a statement claiming that the bank had hit trouble.
He said: ‘In hindsight, the new strategy was flawed, complex, poorly reviewed, poorly executed and poorly monitored.
‘The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought. There are many errors, sloppiness and bad judgment.
‘It puts egg on our face and we deserve any criticism we get.’
Mr Dimon spoke as U.S. regulator the Securities and Exchange Commission prepared to look into how changes in the way JP Morgan calculates risk might have obscured the potential for these trades to do such colossal damage.
Yet despite the accusations levelled at Mr Iksil, there has been no suggestion that his trading tactics broke any rules.
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