JPMorgan executives expected to leave over loss

[mbperrin]

http://www.reuters.com/article/2012/05/13/us-jpmorgan-departures-idUSBRE84C0EP20120513


(Reuters) - JPMorgan Chase & Co is expected this week to accept the resignation of Chief Investment Officer Ina Drew after the bank lost $2 billion or more with a failed hedging strategy using derivatives, sources close to the matter said on Sunday.

Two of Drew's subordinates who were involved with the trades, Achilles Macris and Javier Martin-Artajo, are expected to be asked to leave, according to the people familiar with the matter.

Drew had repeatedly offered to resign after the bank discovered that its portfolio of derivatives tied to bonds was rapidly losing money and had grown too big to be quickly unwind, according to one of the sources. But the resignation was not immediately accepted because of her past performance at the bank.

Until the $2 billion loss was disclosed on Thursday night, Drew was considered in the industry to be one of the best managers of balance sheet risks.



This whole derivatives scam should be illegal...

[Webster Green]

1. I'm assuming they will receive millions for fucking up, as they depart.

Now why would I assume something like that?

[MichiganVote]

2. +1

[monmouth]

3. Future Sen. Warren says Jamie Dimon needs to be fired and I agree..n/t

[dixiegrrrrl]

4. Actually, 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."
http://www.bloomberg.com/news/2012-05-13/jpmorgan-executives-said-to-depart-this-week-after-trading-loss.html

so HE told her to do it, then SHE gets the boot while he stays on drawing down the big bucks.

[rurallib]

5. Wish the Obama admin had a nice warm cell ready for them

[Bigmack]

6. All of them... Dimon included...

.. should commit seppuku next to the bull on Wall Street.

Oh... and they should use both the up-an-down cut and the side-to-side cut.

[FarCenter]

7. Should Drew in NY have trusted Macris (Greek), Martin-Artajo (Spaniard), and Iksil (Frenchman)?

Were they really working in the best interest of JPM or on behalf of some other organization?

The CIO unit in London was about 40 employees.