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Economy
In reply to the discussion: STOCKMARKET WATCH -- Wednesday, 11 July 2012 [View all]Demeter
(85,373 posts)31. Claw Is Out for 'Whale' Officials
http://online.wsj.com/article/SB10001424052702303292204577519273423202112.html
J.P. Morgan Chase & Co. plans to reclaim millions of dollars in stock from executives at the center of the trading blunder that shocked Wall Street and tarnished the reputation of Chief Executive James Dimon...The bank could disclose the plans as early as Friday when it announces earnings, these people said. The clawback amounts were still being determined this week because of the complicated formulas and conditions for imposition, according to one person familiar with the situation.
J.P. Morgan's plan is the most prominent instance of a major U.S. bank seeking to recover pay from a high-ranking executive since the financial crisis. Other members of the CIO, including Bruno Iksil, the London-based trader known as the "London whale" for his outsize bets on certain corporate credit indexes, and his bosses Achilles Macris and Javier Martin-Artajo also are expected to face clawbacks, the people said.
...J.P. Morgan has so far sidestepped some of the worst possible repercussions, with no calls for Mr. Dimon's resignation or signs that regulators are preparing a fresh crackdown on big U.S. banks. "Black eyes heal," said Jason Goldberg, a banking analyst with Barclays Capital. "To the extent that they have worked down the majority of the position, we could start to put this issue behind us."
But banking analyst Michael Mayo of CLSA said it would take until the end of the year for investors to be confident that any risk-management weaknesses have been fixed and the losses are under control. The bank has lost about $25 billion in market value since it disclosed the trading losses May 10.
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J.P. Morgan Chase & Co. plans to reclaim millions of dollars in stock from executives at the center of the trading blunder that shocked Wall Street and tarnished the reputation of Chief Executive James Dimon...The bank could disclose the plans as early as Friday when it announces earnings, these people said. The clawback amounts were still being determined this week because of the complicated formulas and conditions for imposition, according to one person familiar with the situation.
J.P. Morgan's plan is the most prominent instance of a major U.S. bank seeking to recover pay from a high-ranking executive since the financial crisis. Other members of the CIO, including Bruno Iksil, the London-based trader known as the "London whale" for his outsize bets on certain corporate credit indexes, and his bosses Achilles Macris and Javier Martin-Artajo also are expected to face clawbacks, the people said.
...J.P. Morgan has so far sidestepped some of the worst possible repercussions, with no calls for Mr. Dimon's resignation or signs that regulators are preparing a fresh crackdown on big U.S. banks. "Black eyes heal," said Jason Goldberg, a banking analyst with Barclays Capital. "To the extent that they have worked down the majority of the position, we could start to put this issue behind us."
But banking analyst Michael Mayo of CLSA said it would take until the end of the year for investors to be confident that any risk-management weaknesses have been fixed and the losses are under control. The bank has lost about $25 billion in market value since it disclosed the trading losses May 10.
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