By Dawn Kopecki - May 14, 2012 7:45 AM GMT+0700
The entire London staff of JPMorgan Chase & Co. (JPM)’s chief investment office is at risk of dismissal as a $2 billion trading loss prompts the first executive departures as soon as this week, a person familiar with the situation said.
The firm is examining whether anyone in the unit, which employs a few dozen people in London, sought to hide risks, said the person, who requested anonymity because the deliberations are private. Ina Drew, who oversees the unit, is among three people set to leave, the Wall Street Journal reported yesterday, citing unidentified people familiar with the situation. Joseph Evangelisti, a bank spokesman, said Drew would have no comment.
The offices of JPMorgan Chase & Co. are seen in the business and financial district of Canary Wharf in London. Photographer: Simon Dawson/Bloomberg
May 14 (Bloomberg) -- The entire London staff of JPMorgan Chase & Co.’s chief investment office is at risk of dismissal as a $2 billion trading loss prompts the first executive departures as soon as this week, a person familiar with the situation said. Ina Drew, who oversees the unit, is among three people set to leave, the Wall Street Journal reported yesterday, citing unidentified people familiar with the situation. John Dawson reports on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
May 10 (Bloomberg) -- Thursday's "Bloomberg Rewind" includes a discussion of the biggest news of the day and wrap-up of the markets. (Source: Bloomberg)
Signage stands outside JP Morgan Chase & Co. headquarters in New York. Photographer: Peter Foley/Bloomberg
JPMorgan Chase & Co. Chief Investment Officer Ina Drew. Source: JPMorgan Chase & Co. via Bloomberg
Chief Executive Jamie Dimon, 56, announced the loss May 10, assailing his firm’s handling of trading in synthetic credit securities as “flawed, complex, poorly reviewed, poorly executed and poorly monitored.” Initially, he resisted accepting Drew’s resignation, the person said. The incident has given ammunition to proponents of stricter bank regulations.
Drew, 55, is one of two women on the operating committee at JPMorgan, the biggest and most profitable U.S. bank. Her office oversees about $360 billion, the difference between money from deposits and what the bank lends. Dimon had encouraged her unit to boost earnings by buying higher-yielding assets, including structured credit, equities and derivatives, in an expansion of risk-taking led by Achilles Macris, ex-employees said in April.
Macris, 50, and a trader on his team, Javier Martin-Artajo, also are leaving the New York-based firm, the Wall Street Journal reported, citing the unidentified people. Macris and Martin-Artajo didn’t respond to messages left outside of regular business hours.
To contact the reporter on this story: Dawn Kopecki in New York at dkopecki@bloomberg.net
To contact the editor responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net
Posts
No comments:
Post a Comment