“J.P. Morgan Chase & Co. Chief Executive William Harrison acknowledged, yet again, the banking titan’s dismal 2002 financial results, but said it has learned from its mistakes,” writes Tara Bernard in today’s Wall Street Journal Online.

” ‘It’s a time of renewal and getting back to delivering better earnings and stock performance for you, our shareholders,’ Mr. Harrison said at the bank’s annual stockholders meeting in downtown Manhattan, ‘Our financial results in 2002 were unsatisfactory, $1.7 billion in net income was on par with 2001 [results], but far below our potential.’ “

“Last year’s results were tied to a spike in uncollectible corporate loans, notably in the telecommunications and media sectors, as well as the bank’s bleeding private-equity unit and losses tied to Enron Corp., the energy-trader that collapsed amid a major accounting scandal. In addition to writing off bad loans tied to Enron, the bank was also investigated for helping Enron inflate profits and hide debt.”

” ‘In light of lessons learned, we are really raising the bar,’ Mr. Harrison said, noting the ‘many accidents at the intersection of Wall Street and Main Street.’ “

“J.P. Morgan Chase’s provision for credit losses rose to $4.3 billion in 2002, compared with $3.2 billion in 2001 and $1.4 billion in 2000. It wrote off about $2.6 billion in soured loans last year.”

“The company has already announced that it is strengthening its credit-risk management processes, as well as reining in its money-losing private-equity business: Mr. Harrison reiterated plans to scale back the amount of money it funnels into the business, and over time wants that figure to fall to 10% of common equity, from 20%.”

“Mr. Harrison also said a policy-review committee has been created to oversee the types of transactions it engaged in with Enron.”

“When a shareholder asked who was responsible for the bank’s troubled dealings with Enron, Mr. Harrison replied, ‘Accountability would start with me. I accept that.’ “