I knew it would eventually come to this! Some heads must roll and the Chief Investment Officer (CIO) is the first person that has to go! I am glad that Jamie Dimon is also feeling a bit more contrite -- actually I think he feels very humbled.now that it is clear to him that the financial world as he knew it has changed in terms of the expectations of the people on "Main Street", Congress and the regulators. It is no longer business as usual.
The days of swashbuckling traders that take excessive risks so they can have bragging rights at happy hour are definitely over! Therefore, the so-called "London Whale" must now find another line of work! Putting shareholder capital and depositors funds at excessive risk in not acceptable in the new order of things!
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JPMorgan CIO To Retire Over $2-Billion Loss
Two other executives are also expected to lose their jobs in the wake of the stunning loss.
| Posted Monday, May 14, 2012, at 10:27 AM ET
JPMorgan Chase headquarters in New York
Photo by Michael Kappeler/AFP/Getty Images.
UPDATE: JPMorgan Chase's chief investment officer will lose her job in the wake of the company's $2 billion loss.
Bloomberg reports that Ina Drew, 55, will retire. The head of global fixed income at the company, Matt Zames, will take over the CIO position. According to the Associated Press, sources say that Drew had offered to resign "several" times since the disclosure on Thursday of the loss.
Drew made $15.5 last year and $16 million the year before, and was one of the company's highest-paid employees, as well as one of two women on its operating committee. The Wall Street Journal is reporting that two other executives are expected to resign over the loss as well, including Bruno Iksil, aka the "London Whale."
Sunday, May 13 Jamie Dimon, the CEO of JPMorgan Chase acknowledged Sunday he had been “dead wrong” to dismiss concerns about the bank’s trading loss as a “tempest in a teapot.” Dimon added: "We got very defensive. And people started justifying everything we did." Although the country’s largest bank lost at least $2 billion, the bank isn’t threatened, Dimon said in an interview that aired Sunday on NBC’s Meet the Press.
Still, Dimon emphasized that he understood the loss was no small matter. “We made a terrible, egregious mistake,” Dimon said, according to the Associated Press. “There's almost no excuse for it.”
http://slatest.slate.com/posts/2012/05/12/jpmorgan_2_billion_loss_could_lead_to_more_oversight_regulations.html?wpisrc=obinsite
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