Sunday, May 13, 2012

JPMorgan execs could lose jobs over $2.3 billion trading loss

It didn't take too long. Who will be fall on the sword?

(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

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