Is JPMorgan Chase’s Loss Our Loss? [POLL]
To the unwashed masses, watching the Real Housewives of New Jersey yesterday is the type of high drama that guides their lives.
And while I consider myself among them, I think we’re all taking our collective “eye off the ball”.
The big news over the weekend was the 2 billion dollar trading loss that JPMorgan Chase’s sustained.
That’s the real drama we’re losing sight of!
In the wake of that, according to reports, the executive responsible for trading strategy at JPMorgan Chase, and one of the highest-ranking women in Wall Street became the first casualty of the bank’s $2 billion loss.
Short Hills resident Ina Drew, the chief investment officer for the bank and a 30-year veteran of the company, will retire.
JPMorgan Chase’s CEO Jamie Dimon has led the bank though the recent financial crisis relatively unscathed and has emerged as a leading voice against more regulation, arguing that banks could manage their own risk.
But that wasn’t to be…. JPMorgan revealed last week that it has lost at least $2 billion in a complex trading scheme, leading to the resignation of Drew…. Previously he’d said it was all a tempest in a teapot.
Of Drew, Dimon said her “vast contributions to our company should not be overshadowed by these events.” He stressed that the company remains “very strong.”
At least two other executives at the bank will be held accountable for the mistake.
Drew oversaw the division of the bank responsible for the loss. She was paid $15.5 million last year and almost $16 million in 2010, making her one of the highest-paid officials at JPMorgan, according to a regulatory filing.
One wonders the golden parachute she’ll receive in the wake of this massive “cluster f…!”
Dimon said in a TV interview aired Sunday that he was “dead wrong” when he dismissed concerns about the bank’s trading last month….saying “We made a terrible, egregious mistake”, and conceded to NBC that the bank “hurt ourselves and our credibility” and expects to “pay the price for that.”