This is about JPM earning stigma like "Goldman Sachs Fabulous Fab" and "MF Global's Corzine ordered funds transferred". This is about Daimon did keep it a lid until now. When did he know it? How long he knew it? What other activities in JPM he kept a lid on?
So what if he knew it earlier than disclosed. Its bordering on imaterial. The market has way over reacted. Companies have non-recurring events that reduce earnings by 20% after tax ALL THE TIME and don't mention them until earnings come out. JPM came out before earnings.
The big deal is the chief was allegedly ignorant of the activities that resulted in the $2 billion loss and he made statements that mislead investors. It is one thing to be arrogant. But if one is ignorant and arrogant he can lead JPM. Minimizing the loss is an insult to those investors who lost hard money. Good Luck.
It's a big deal because we rarely get a window into the factory to see how they make the sausage. We got a glimpse, and it wasn't pretty, and it raises other questions...What else is going on inside there??? No one knows.