<html> <head><style type ="text/css">body { font-family: "Bloomberg Prop Unicode I", Verdana, sans-serif; font-size:125%; letter-spacing: -0.3pt; color: #FF9F0F; background-color: #000000; text-align: left; } p {line-height: 1.25em; max-width:900px; width:expression(document.body.clientWidth > 900? "900px": "auto" );} h1, h2, h3 { text-align: left; font-weight: normal; color: #FFFFFF; } h1 { font-size: 130%; } h2 { font-size: 115%; } h3 { font-size: 100%; } #bb-style { font-size: 90%; max-width:900px; width:expression(document.body.clientWidth > 900? "900px": "auto" ); } b, strong { font-weight: bold; } i, em { color: #FEC54A; } pre { font-family: "Andale Mono", "Monaco", "Lucida Console"; letter-spacing: -0.3pt; line-height: 1.25em; } table { border: 0; font-size: 90%; width: 100%; margin-left: auto; margin-right: auto; } td, tr { text-align: left; } td.numeric { text-align: right; } a:link { color:#53B2F5; text-decoration: none; } a:visited {color:#53B2F5} a:active {color:#53B2F5} a:hover {color:#53B2F5} </style> </head> <body> <p>By Jonathan Weil</p> <p>Fortune writer Stephen Gandel has an <a href="http://finance.fortune.cnn.com/2013/01/15/jpmorgan-board-trading-loss/?section=magazines_fortune">article</a> on the CNNMoney website this afternoon pointing out (disapprovingly) that, "Despite criticism, the 'London Whale' trading loss has yet to result in a single change to JPMorgan Chase and Co.'s board of directors." He asks why that is.</p> <p>Let me try to answer the question in as practical a way as I can, by pointing to JPMorgan's <a href="http://www.bloomberg.com/quote/JPM:US">stock price</a>.  At $46.35, it's up 25 percent since May 11, which was the first day of trading after JPMorgan belatedly began to <a href="http://www.bloomberg.com/news/2012-05-11/what-jamie-dimon-doesn-t-know-is-plain-scary.html">fess up</a> to its Whale problem. The thing about rising stock prices is they have a funny way of defusing shareholders' anger, never mind how egregious the breakdown in JPMorgan's internal controls may have been. And shareholders are the ones who vote on board members.</p> <p>JPMorgan reports fourth-quarter earnings tomorrow, when it also is <a href="http://www.bloomberg.com/news/2013-01-14/jpmorgan-s-whale-trade-subject-of-occ-order-to-fix-risk-controls.html">expected</a> to release an internal report on the $6 billion trading loss. One hopes the company will use this opportunity to come clean and put the London Whale scandal to rest for good.</p> <p>(<a href="http://topics.bloomberg.com/jonathan-weil/">Jonathan Weil</a> is a Bloomberg View columnist. <a href="https://twitter.com/JonathanWeil">Follow him</a> on Twitter.)</p> <p>Read more breaking commentary from Bloomberg View at <a href="http://www.bloomberg.com/view/the-ticker/">the Ticker</a>.</p> <p> </p> </body> </html>