NEW YORK — The board of JPMorgan Chase voted Tuesday to release an internal report detailing the bad bet — and related management missteps — that cost the nation’s largest bank more than $6 billion, according to several people familiar with the matter.
Since announcing the trading losses in May, JPMorgan Chase has worked to move beyond the fiasco, shuffling senior management, clawing back millions of dollars in compensation from senior executives, and commissioning the internal investigation.
The report, which exceeds 50 pages, is the result of the investigation, led by Mike Cavanagh, JPMorgan’s former chief financial officer.
The losses stemmed from a bungled derivatives bet made by the bank’s Chief Investment Office, which was a little-known unit with offices in London and New York. An aggressive group of traders in London built a large position that distorted the credit market and prompted $6.2 billion in losses.
Some within the bank were wary of releasing the report, which takes aim at lax supervision and risk controls, according to the people who insisted on anonymity because the discussions are not public. One concern was that plaintiff attorneys might seize on the report, the people said.
But Jamie Dimon, the bank’s chief executive, argued that the report should be released. The report is expected to be critical of Douglas Braunstein, formerly the bank’s chief financial officer, for failing to strictly monitor the activities of the traders in London.
Ahead of JPMorgan’s earnings announcement Wednesday, the board met to discuss whether to make the report public. Also on the agenda was whether to reduce the bonuses of Dimon and Braunstein. Dimon, these people said, could have his annual payout cut by as much as 20 percent.
Among the six largest US banks, Dimon was the highest-paid chief executive, taking home $23.1 million in 2011. That year, his total pay package was made up of stock and option awards along with a $4.5 million cash bonus.
A spokesman for JPMorgan Chase did not immediately return calls for comment.