(NewsCore) - Several senior managers at J.P.
Morgan Chase could lose their jobs over the embarrassing $2.3 billion trading
loss it announced earlier this week.
Sources said the revered bank could see any
number of executives removed from the company, including CEO Jamie Dimon --
although many said that was a long shot.
"It really goes to the issue of
credibility," said Dick Bove, bank analyst at Rochdale Securities. "I
think heads are going to roll at J.P. Morgan, and they should."
J.P. Morgan is currently conducting an
internal review of its risk management and trading focused on its Chief
Investment Office (CIO). The bloodletting might wait until the internal probe
is over.
The executives whose fingerprints are all
over the debacle -- and therefore closest to the guillotine -- are trader Bruno
Iksil, CIO chief Ina Drew and CFO Doug Braunstein.
French-born Iksil, based in London, is said
to have placed a massive bet that has been tough for J.P. Morgan to unwind and
might actually result in losses well higher than $2.3 billion, sources said.
Drew, Iksil's boss, has been running J.P.
Morgan's little-known but powerful CIO since 2005. Drew, who lives in Short
Hills, N.J., is described as a hot-shot fixed-income trading whiz who rose up
the ranks to manage the unit in the US.
Braunstein is under fire because it is his
responsibility to assess the risk level of J.P. Morgan's bets.
Read more: New York Post
No comments:
Post a Comment