First head set to roll over $2B in losses at Chase

[jaxx]

NYT By NELSON D. SCHWARTZ and JESSICA SILVER-GREENBERG
updated 5/13/2012 5:42:26 PM ET


The $2 billion trading loss at JPMorgan Chase will claim its first casualty among top officials at the bank as early as Monday, with chief executive Jamie Dimon set to accept the resignation of the executive who oversaw the trade, Ina R. Drew. Ms. Drew, a 55-year-old banker who has worked at the company for three decades and serves as chief investment officer, had repeatedly offered to resign since the scale of the loss became apparent in late April, but Mr. Dimon had held off until now on accepting it, several JPMorgan Chase executives said.

Two traders who worked for Ms. Drew also planned to resign, JPMorgan Chase officials said. Her exit would mark a stunning fall from grace for one of the most powerful women on Wall Street, as well as a trusted lieutenant of Mr. Dimon.

Last year, Ms. Drew earned roughly $14 million, making her the bank’s fourth-highest highest paid officer. In an appearance on NBC’s “Meet the Press” on Sunday, Mr. Dimon sounded a contrite note: the famously confident, even cocky, executive repeated his apologies for the most embarrassing blunder of his eight-year tenure at the top of the largest bank in the United States. “There’s almost no excuse for it,” Mr. Dimon said about the trading loss that stemmed from a soured bet on credit derivatives made by the bank’s chief investment office in London. The bank was “sloppy” and “stupid,” Mr. Dimon said.

<..> But when market tides abruptly shifted in April and early May, Ms. Drew’s instructions to traders to scale back what had become a gigantic bet came too late to avoid racking up losses that could eventually exceed the current $2 billion estimate.

http://www.msnbc.msn.com/id/47407164/ns/..._business/

And Dimon says regulation isn't needed. Uh huh.

[janedrake]

It continues to delight me that chest-thumping, trash-talking Jamie Dimon has become the poster boy for the ongoing need for strong - very strong - banking regulation.

[jaxx]

(05-13-2012 09:03 PM)janedrake Wrote:  It continues to delight me that chest-thumping, trash-talking Jamie Dimon has become the poster boy for the ongoing need for strong - very strong - banking regulation.

Andrea Mitchell was talking about this with someone on her show when the story broke and I thought she was going to cry. She was so worried about poor Dimon, it couldn't be any of his fault. I about puked.

[pappy]

(05-13-2012 09:13 PM)jaxx Wrote:  

(05-13-2012 09:03 PM)janedrake Wrote:  It continues to delight me that chest-thumping, trash-talking Jamie Dimon has become the poster boy for the ongoing need for strong - very strong - banking regulation.

Andrea Mitchell was talking about this with someone on her show when the story broke and I thought she was going to cry. She was so worried about poor Dimon, it couldn't be any of his fault. I about puked.

Andrea Mitchell, sometimes you just gotta love her and other times...well...I better hold my tongue.

When it comes to social and women's issues she is most often strong and on point. On the economy and specifically the markets I think she is too close to the subject matter without really having a personal stake in the matter.

It wouldn't surprise me in the least to find out that Jamie Dimon is on her and hubby Alan's list of BFFs. Her only stake in the markets is through her husband and their close friends in the markets and it is impossible for me to believe that her views on the markets are not colored by those relationships.

[sandnsea]

Isn't this exactly what they said in 2008? How could the same offices keep doing the same thing they were doing the first time they nearly destroyed the economy? It is not "sloppy" and "stupid", it's calculated arrogance oblivious of all consequence.

"stemmed from a soured bet on credit derivatives made by the bank’s chief investment office in London"