Lloyds Banking Group chairman predicts that losses could be repeated even in groups with a good risk culture
The huge losses suffered by JP Morgan following its London office’s disastrous investment strategy, could just as easily happen elsewhere, the chairman of the UK’s largest retail bank has warned.
Sir Win Bischoff, chairman of Lloyds Banking Group, made his prediction following yesterday’s shareholder meeting for the part taxpayer owned institution.
He said: “I’m a great fan of Jamie Dimon [JP Morgan chief executive]. But my concern is if it can happen to JP Morgan, which has such a good risk culture, it could happen to anyone.”
He said no links had been found between Lloyds and JP Morgan’s positions that led to a $2bn loss in six weeks.
Shareholders in LBG, which includes HBOS, Lloyds TSB and Scottish Widows, voted overwhelmingly in favour of the company’s remuneration report.
The firm avoided the sort of investor revolt which has claimed the scalps of chief executives at Aviva, Trinity Mirror and AstraZeneca, thanks, in part, to boss Antonio Horta-Osorio waiving his bonus. Sir Win called the decision of Horta-Osorio to not take a bonus a “principled decision”.
To cheers from the around 800-strong audience, one shareholder said: “There should be no bonuses until a return of the dividend.”
Chairman Sir Win said: “We will resume payment of the dividend as soon as financially possible.”
He added: “This is the preeminent issue for the board. We’d like to introduce it sooner rather than later.”
There was no revision to the £3.6bn pot put aside to fund the PPI payouts to customers mis-sold insurance, but Horta-Osorio revealed half the amount – £1.8bn – has already been paid out.