JPMorgan exec expected to resign, AP source says

[Omaha Steve]

Source: AP-Excite

By PALLAVI GOGOI

NEW YORK (AP) - JPMorgan Chase is expected to accept the resignation of one of the highest-ranking women on Wall Street after the bank lost $2 billion in a trading blunder, a person familiar with the matter said Sunday.

The bank will accept the resignation of Ina Drew, its chief investment officer, the person told The Associated Press, speaking on condition of anonymity because the person was not authorized to discuss the decision publicly.

Drew, 55, one of the highest-paid officials at JPMorgan Chase, had offered to resign several times since CEO Jamie Dimon disclosed the trading loss on Thursday, the person said. Pressure built on the bank over the weekend to accept.

At least two other executives at the bank will be held accountable for the mistake, the person said.

Read more: http://apnews.excite.com/article/20120514/D9UO50I00.html

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In this May 11, 2012 file photo, people stand in the lobby of JPMorgan Chase headquarters in New York. JPMorgan Chase is expected to accept the resignation of one of the highest-ranking women on Wall Street after the bank lost $2 billion in a trading blunder, a person familiar with the matter said Sunday, May 13, 2012. The bank will accept the resignation of Ina Drew, its chief investment officer, the person told The Associated Press, speaking on condition of anonymity because the person was not authorized to discuss the decision publicly. (AP Photo/Mark Lennihan, File)

[TrollBuster9090]

1. Can I be next in line for her job as "Vice President in charge of Scape Goating?"

It's common knowledge that large companies usually have a VP or other high ranking executive hanging around whose only purpose is to RESIGN whenever the company screws up, and their dirty laundry ends up in the news papers. This is just the first of several standard red herrings they're going to drag across our path to distract us. Don't be fooled by it.

Don't be impressed by the sight of a couple of token executive heads rolling. That's just the gentile version of the Chinese system. The Chinese system is to have no regulations on business, but when a business dose something really bad (like putting PCB waste in baby food) you just put the CEO in front of a firing squad and then say "see, problem solved. Nobody will dare to do THAT again."
Be impressed when you see:

1. Dimon lose his job and his golden parachute, and ends up in court fighting a class action civil suit from the shareholders of JPMorgan Chase & Co.

2. Several Wall Street executives are in JAIL for collusion with the ratings agencies, and for criminal intent to defraud their clients.

and last but not least,

3. There is some REAL legislation in place to regulate Wall Street, and derivatives trading in particular.

[myrna minx]

2. I wonder what the bonus will be?

[maddezmom]

3. Report: 3 JPMorgan executives to resign

¬snip¬The bank -- the biggest in the United States by assets -- is expected to accept the resignation this week of Ina Drew, its New York-based chief investment officer and one of its highest-paid executives, in the next few days, the sources said.

Two of Drew's subordinates who were involved with the trades, London-based Achilles Macris and Javier Martin-Artajo, are also expected to be asked to leave, they said. Neither was available for comment on Monday.

The departures come after the unit Drew runs, known as the Chief Investment Office (CIO), mismanaged a portfolio of derivatives tied to the creditworthiness of bonds, according to bank executives.

The portfolio included layers of instruments used in hedging that became too complicated to work and too big to quickly unwind in the esoteric, thinly traded market.

more: http://www.chicagotribune.com/news/chi-ap-limited-3-jpmorgan-execs-to-resign-20120513,0,4155271.story

[chervilant]

10. In May 2009,

while in Boston to receive the John F. Kennedy Profiles in Courage award, the most erudite Brooksley Born warned about the economic catastrophe we're witnessing:

She once again warned about the danger of Dark Markets, now grown to $680 trillion of notional value, according to the Bank for International Settlements -- "more than 10 times the amount of the gross national product of all the countries in the world."

"If we fail now to take the remedial steps needed to close the regulatory gap," Born said, "we will be haunted by our failure for years to come."

Perhaps you have noticed the dearth of information about over-the-counter derivatives, the "Dark Markets" Born has long cautioned will be the global economy's biggest challenge.

[Myrina]

4. Unless he's being forced to take a job as a McDonald's fry cook ...

and leave behind all his stock options, bene's, retirement plan and other 'ill gotten gains' ... I don't give a shit.

We all know any of these fuckers are going to walk away with 'severance' checks bigger than any of us will see as our total lifetime income, and be replaced with a group of even higher-paid douchebags than they were.

[zazen]

5. are they following the script from the film "Inside Job?"

Demi Moore's character takes the fall for the firm, if I recall.

Perfect.

[LiberalFighter]

6. They have to be fools not to consider Dimon also at fault.

If the board members don't push for his ouster than they are at fault too.

[Enrique]

7. how golden is her parachute? n/t

[suffragette]

11. Possibly 14.65 million

http://online.wsj.com/article/SB10001424052702303505504577402383167306686.html

Depending on the terms of her separation, for example, Ms. Drew may be in line to receive $14.65 million of accelerated equity awards, according to securities filings.



That parachute still floats her far above the rest of us 99% here on the ground.

[Enrique]

12. we're just jealous

of her success.

[TrollBuster9090]

15. I heard that line worked out really well for the French plutocrats in 1789.

"If they have no bread then let them eat cake"- Marie Antionette 1789

21st Century translation:

"If they cannot afford student loans, then let them borrow money from their parents" Mitt Romney 2012

[suffragette]

17. Yes, and jealous of those oh so talented people like her that had to be given all the big bonuses

so they could continue , you know, doing this so well.

[TrollBuster9090]

14. Don't you just love living in the land of opportunity?

Only in America can you blunder your way into costing your company $2 billion in losses, and receive a $15, 000, 000 severance bonus as 'punishment.'

[suffragette]

18. Well, there's always Simpson-Bowles austerity for the rest of us

At least if Dimon has a say in it:
http://crooksandliars.com/susie-madrak/jamie-dimon-wants-simpson-bowles-now-

[Ichingcarpenter]

8. Damage Control these guys will make millions upon leaving

NOTHING WILL CHANGE ... EXCEPT THEIR PR DEPARTMENT.

[chervilant]

9. Is Dimon a denizen of Richistan?

The members of the Global Oligarchy are few in number (less the 370), yet they own and control more than 45% of the world's resources, including human resources.

The top 400 richest people are from Australia, Austria, Bahama, Belgium, Bermuda, Brazil, Chile, China, Colombia, Czech Republic, Denmark, England, Egypt, France, Germany, Hong Kong, India, Israel, Japan, Kazakhstan, Korea (South), Kuwait, Lebanon, Malaysia, Mexico, Monaco, Norway, Portugal, Russia, Saudi Arabia, Singapore, Sweden, Spain, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab Emirates, and Venezuela.

Despite the geographic diversity of the uber wealthy, their common socioeconomic status renders each a member of Richistan, whose citizenry enjoy the rarest of comestibles, the finest accommodations, the most expensive trinkets, and richly appointed exclusive residences. Denizens of Richistan travel in private jets, yachts, and limos; and they NEVER discuss their wealth.

Fully one-third of the wealthiest 400 are from the United States. Almost half of the 50 wealthiest people are from the United States. (Bill Gates was toppled from his rarefied status as the richest person on the planet in March of last year; replaced by Mexican mogul Carlos Slim Helu.)

When you contemplate this radical income inequity, fellow DUer, please understand viscerally, that you are NOT a member of this exclusive club, nor are you likely to EVER be. You are an insignificant member of the vast Hoi Polloi. The denizens of Richistan comprise a mere 5.28 X 10^(-6)% of our planet's population (using the current World Population figure of 7,011,411,436). For those of you who are math challenged (please, understand that you are likely to have had a less than optimal experience learning math, for a reason), that number is 0.0000000528 of our planet's population. The likelihood that you will join the ranks of the uber wealthy is in the same stratosphere of highly unlikely as the likelihood that you will win a lottery.

If anyone thinks that the decline of the US as the Planet's Global Bully will have any real impact on the wealth and power of the uber wealthy, I have to offer you exclusive beach front property in Las Vegas.

[harun]

13. How is turning Wall St. in to a Casino working out for everyone?

[Brooklyn Dame]

16. So the rogue trader stays but the CIO is leaving?

What about Mr. Dimon himself? Didn't he fashion himself to be the world's greatest risk manager? Ha!!

http://borderlessnewsandviews.com/2012/05/duh-its-financial-reform-time-stupid/

[Ichingcarpenter]

19. The bank lost $2 billion, the boss walks off with $32m

Ina Drew, the executive who ran the department behind JP Morgan's $US2 billion trading loss, has left the bank and will walk away with about $US32 million.

The 55-year-old chief investment officer oversaw the division that made bets that JP Morgan has warned could rack up a further $US1 billion in losses.
She will be replaced by Matt Zames, head of fixed income at JP Morgan's investment bank and a former proprietary trader.

One of the best-paid women on Wall Street, Ms Drew last year received a remuneration package worth $US15.5 million.
Corporate filings show that following her resignation she is entitled to $US400,000 in severance as well as a share award that was worth $US16 million yesterday. On top of this, she has unexercised options that were valued at the end of last year at $US3.44 million, a series of retirement benefits worth a further $US2.63 million, and a $US9.87 million deferred compensation pot built up over several years.

http://m.smh.com.au/business/the-bank-lost-2-billion-the-boss-walks-off-with-32m-20120515-1ynwx.html