JPMorgan Unit's Whole London Staff at Risk

[marmar]

(Bloomberg) The entire London staff of JPMorgan Chase & Co. (JPM)’s chief investment office is at risk of dismissal as a $2 billion trading loss prompts the first executive departures as soon as this week, a person familiar with the situation said.

The firm is examining whether anyone in the unit, which employs a few dozen people in London, sought to hide risks, said the person, who requested anonymity because the deliberations are private. Ina Drew, who oversees the unit, is among three people set to leave, the Wall Street Journal reported yesterday, citing unidentified people familiar with the situation. Joseph Evangelisti, a bank spokesman, said Drew would have no comment.

Chief Executive Jamie Dimon, 56, announced the loss May 10, assailing his firm’s handling of trading in synthetic credit securities as “flawed, complex, poorly reviewed, poorly executed and poorly monitored.” Initially, he resisted accepting Drew’s resignation, the person said. The incident has given ammunition to proponents of stricter bank regulations.

Drew, 55, is one of two women on the operating committee at JPMorgan, the biggest and most profitable U.S. bank. Her office oversees about $360 billion, the difference between money from deposits and what the bank lends. 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. ....................(more)

The complete piece is at: http://www.bloomberg.com/news/2012-05-13/jpmorgan-executives-said-to-depart-this-week-after-trading-loss.html

[grasswire]

1. Achilles Macris

Will he get another job?

[riderinthestorm]

2. Dimon must go as well. No CEO should remain in power whilst overseeing this crap

AND telling the public that the financial markets don't need regulating.

This is like the Abu Ghraib guards getting fired while the higher ups who authorized the torture go scot free. Clear out the whole house and revamp policy.

[Mopar151]

3. These con artists should be packing a small bag and blowing town.

They all have enough loot stashed to live quietly and well, somewhere out of subpeona range. They won't. The mooks that blew AIG's money are still breathing free air, too.