The "Fail-Whale" Fallout Begins: Three JPM Execs To Leave Prop-Trading, Pardon, Hedging Bank

Tyler Durden's picture




 

In a development that would make Dostoevsky turn in his grave, we learn that the first three casualites of Fail-Whalegate have been identified.

From the WSJ:

Three high-ranking officers are expected to leave J.P. Morgan Chase & Co. this week, said people familiar with the situation, in the latest fallout from a trading blunder that has cost the bank at least $2 billion.

 

Those leaving are Ina Drew, who since 2005 has run the risk-management unit that is responsible for the losses; Achilles Macris, who is in charge of the London-based desk that placed the trades; and trader Javier Martin-Artajo, a managing director on Mr. Macris’ team, the people said.

 

Ms. Drew has offered to resign multiple times and that request will likely be accepted this week, these people said. She is expected to leave as soon as Monday, the people said.

 

Trader Bruno Michel Iksil, nicknamed the "London Whale" for the big positions he took in credit markets on behalf of the risk-management unit called the chief investment office, is likely to depart as well, but it isn't yet clear when that will happen, said people familiar with the situation. Mr. Macris, Mr. Martin-Artajo and Mr. Iksil have all been stripped of trading responsibilities, added one of these people. All four executives declined comment through the company.

 

Ms. Drew initially tried to downplay the issues when the positions came to light in April, said people familiar with the situation, but once the scope of the losses became apparent she offered to resign, said people familiar with the situation.

Of course, if these three individuals had made money, instead of losing it, they would have received multi-million dollar bonuses and gotten promoted to positions of even greater (ir)responsibility, resulting in even greater potential future losses, and likely taxpayer bailouts.

Thank you Chairsatan put.

And a little more on Ina Drew, again from WSJ:

Meet Ina R. Drew, the Chief Investment Officer at J.P. Morgan whose unit has suddenly found itself in a spotlight most wouldn’t envy.

The 55-year-old executive has been running the CIO since 2005, and been a long-time sidekick of CEO Jamie Dimon. She is currently a member of his closest circle of advisers, the operating committee.

 

She is also among the highest paid executives at the bank, making $15.5 million in 2011 and over $15.9 million in 2010. Both numbers would have put her among the top earning executives, behind only Dimon and Investment Bank head Jes Staley last year, according to a proxy filing.

 

Fortune ranked her No. 8 on last year’s 25-highest paid women list. Across Wall Street, she is among the highest ranking females.  And at J.P. Morgan, she is among the last top females at the bank, along with the head of asset management Mary Erdoes, after former top aide Heidi Miller departed.

 

In J.P. Morgan’s proxy filing this year, the compensation discussion says she “successfully accomplished her business and people agenda objectives for 2011 by creating shareholder value through risk management activities across a broad array of market sectors and currencies with the help of a very knowledgeable leadership team that Ms. Drew has developed over a long career in various locations around the globe.”

 

[Ina Drew] “loves crises” a fitting profile that is worth remembering today:

 

Her eyes light up at the mention of last summer’s European currency free-for-all and she breaks into a grin when talking about the 1987 stock market crash.

 

“Crises make markets volatile, increase the flow of funds and provide us with more information,” she says.

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Sun, 05/13/2012 - 16:22 | 2421884 maxmad
maxmad's picture

The true fallout will be the collapse of the PONZI Scheme!!

Sun, 05/13/2012 - 16:28 | 2421899 Michael
Michael's picture

Mein Kamph, my struggle with the international banking cartel model is almost over, as they will be riding the subway and eating tuna fish sandwiches pretty soon.

I just thank God every day for the complete and total worldwide economic collapse, as that is the only thing that will solve most of our problems in one felled swoop.

Sun, 05/13/2012 - 16:32 | 2421916 Manthong
Manthong's picture

I wonder if she's sitting in her office now like Demi Moore was in the movie.

Sun, 05/13/2012 - 16:40 | 2421934 Nader_Nazemi
Nader_Nazemi's picture

Wow, first thing came to my mind. 

 

Margin Call !!!!!!!!!!!!!!

Sun, 05/13/2012 - 16:54 | 2421971 Dr Benway
Dr Benway's picture

She still gets to keep all the money she has stolen over the years.

 

So she has won. The 99% have lost.

 

Zero fucking satisfaction?

Sun, 05/13/2012 - 17:09 | 2422013 Kaiser Sousa
Kaiser Sousa's picture

Satisfaction will not b felt until they pay the ultimate price for their crimes against humanity....the question is who among us is willing to step up......

Sun, 05/13/2012 - 17:29 | 2422082 LawsofPhysics
LawsofPhysics's picture

There are several.  Many of whom have already bled for this country as well as bled others.  We are called veterans and we are many.  Some of us have worked our way back into the appropriate positions.  Be patient, we need the devils to self-identify first.  By the looks of things, many are starting to turn on one another already.  Shouldn't be too long now.

Sun, 05/13/2012 - 18:07 | 2422182 Ahmeexnal
Ahmeexnal's picture

She looks like pig with makeup.

 

Sun, 05/13/2012 - 19:03 | 2422265 AlaricBalth
AlaricBalth's picture

"Three high-ranking officers are expected to leave J.P. Morgan Chase & Co. this week, said people familiar with the situation, in the latest fallout from a trading blunder that has cost the bank at least $2 billion."

The spin on this is plain for all too see. These 3 are not high ranking JPM officers. Especially the third guy who is a Managing Director. Each division of JPM has its own contingent of Mng Dirs. Last year 132 people were promoted to that designation in just the Investment Banking division. The number of Managing Directors at JPM is quite substantial.

They are trying to make it sound like 3 of Jamie Dimon's top lieutenants are falling on their swords for the good of the company. What a joke. These three were quite expendable.

Sun, 05/13/2012 - 20:20 | 2422390 Chaffinch
Chaffinch's picture

Expendable and, in her case at 55 years old and having earned $30million in the last 2 years, completely happy to go.

I'm sure she can enjoy the crisis well enough from the outside.

Sun, 05/13/2012 - 22:19 | 2422548 Western
Western's picture

Wow she looks like a whale.

Sun, 05/13/2012 - 23:51 | 2422733 nope-1004
nope-1004's picture

Fat n Ugly.

Not even any nice looking crooks anymore.  Just pigs left fighting for the last crumbs.

 

Mon, 05/14/2012 - 05:01 | 2422952 Harlequin001
Harlequin001's picture

she must be really, really clever to earn that kind of money...

Sun, 05/13/2012 - 18:59 | 2422268 WestVillageIdiot
WestVillageIdiot's picture

Aren't you being a little hard on pigs?

Which has more cottage cheese?

a)  The state of Wisconsin

b)  Ina Drew's ass

 

 

Sun, 05/13/2012 - 19:40 | 2422330 skepticCarl
skepticCarl's picture

"She looks like pig with makeup."

Please post a photo of your Mom at age 55, and let the ZH audience comment.

Sun, 05/13/2012 - 19:52 | 2422348 Ahmeexnal
Ahmeexnal's picture

Why are you defending this hideous sow?

By the contents of your skull, you should change your handle name to "septicKarl"

Sun, 05/13/2012 - 20:13 | 2422378 Vagabond
Vagabond's picture

Obviously you made fun of someone who looks like his mother.

Mon, 05/14/2012 - 05:58 | 2422982 jeff montanye
jeff montanye's picture

alan greenspan looks like a particularly ugly toad but that's not the point.  the point is he (they) do evil, impractical things.  things, in the short and long run, to the disadvantage of capitalism not to mention democracy.  oops i mentioned it.

Sun, 05/13/2012 - 20:39 | 2422426 kekekekekekeke
kekekekekekeke's picture

you gotta wonder what some of these dudes look like...

Mon, 05/14/2012 - 09:32 | 2423364 Widowmaker
Widowmaker's picture

Financial crime incorporated (racketeering) eats veterans for breakfast.

Look at all present engagements, your meat grinder is their record bonuses. Oh and those that live get the bill.

Mission accomplished!

Sun, 05/13/2012 - 19:56 | 2422357 HellFish
HellFish's picture

Kaiser, if I ever get diagnosed with pancreatic cancer I'll start working my way down my list.

Sun, 05/13/2012 - 17:10 | 2422015 LetThemEatRand
LetThemEatRand's picture

That shit eating smile on her face is only bigger today.  

Sun, 05/13/2012 - 17:26 | 2422063 vast-dom
vast-dom's picture

Correct doc. Just remember, if you can't be just, be arbitrary.... And always get more more more!

Sun, 05/13/2012 - 19:25 | 2422312 lotsoffun
lotsoffun's picture

that is about the story.  they stole.  we lost.  geez i wish i wasn't so hyperactive and needing to work.  just should have bought a huge place somewhere warm with nothing down and run up credit cards and kicked back.  second best thing to being a wall street whale.

it took a long time, but wall street really did figure out how to trickle it all up.

and no repercussions.  none.  nothing at all.  and the people she enriched, they will hire her for just as much.

 

Sun, 05/13/2012 - 19:54 | 2422347 ToNYC
ToNYC's picture

That sucks not getting 15 large next year; but she'll be busy buying flats in Rio and Singapore, living under an assumed name.

 

Sun, 05/13/2012 - 20:19 | 2422392 Lord Koos
Lord Koos's picture

She gets to retire early, oh the horror oh the disgrace.

Mon, 05/14/2012 - 09:41 | 2423395 Zero Govt
Zero Govt's picture

that's it, blame the staff never the executives

Dimon was in the toilet the whole time this multi-billion position was running, never knew a thing ok

Sun, 05/13/2012 - 17:05 | 2422006 HarryM
HarryM's picture

55 year old woman earns $12000+ month on the internet - ask Ina

Mon, 05/14/2012 - 01:57 | 2422822 johnconnor
johnconnor's picture

that bitch needs to drop 50 pounds

Sun, 05/13/2012 - 16:46 | 2421952 Sudden Debt
Sudden Debt's picture

I like tuna fish sandwiches ....

Sun, 05/13/2012 - 16:51 | 2421962 knukles
knukles's picture

It tastes like Demi Moore

Sun, 05/13/2012 - 17:16 | 2422037 Hulk
Hulk's picture

Whadya call an open can of tune in Demi's bathroom ???

potpourri !!!

Sun, 05/13/2012 - 18:40 | 2422230 knukles
knukles's picture

Must be a demented Demi Moore fan hereabouts.
Well, all things considered, she was quoted as saying after she made that navy seal movie that peeing in the ocean made her fell like a warrior.

Maybe the rots not her crotch after all.
PS  Rumor she's gonna run for California Secretary of Fisheries. 

Sun, 05/13/2012 - 20:38 | 2422423 Hulk
Hulk's picture

LOL, she's definitely off my pool party list...

Sun, 05/13/2012 - 22:42 | 2422574 Acorn10012
Acorn10012's picture

"It tastes like Demi Moore."

Though the tuna's not as oily.

Sun, 05/13/2012 - 16:51 | 2421965 Tijuana Donkey Show
Tijuana Donkey Show's picture

Radioactive tuna? 

Sun, 05/13/2012 - 19:58 | 2422358 Matt
Matt's picture

Radioactive, Mercury-filled Blue Fin Tuna.

Sun, 05/13/2012 - 18:40 | 2422232 q99x2
q99x2's picture

Canned Tuna better than Gold.

Sun, 05/13/2012 - 20:23 | 2422400 Chaffinch
Chaffinch's picture

+1
Me too sudden debt!
And sometimes, tuna with sweetcorn.

Sun, 05/13/2012 - 20:22 | 2422393 Gordon Freeman
Gordon Freeman's picture

Bless the Lord (for all of us!) that your "struggle" is almost over--and that you will finally STFU!

BTW, in case you missed the memo, shithead, tuna sandwiches are one of th healthiest things you can possibly eat...

Sun, 05/13/2012 - 22:00 | 2422519 Tijuana Donkey Show
Tijuana Donkey Show's picture

Uh, if your idea of health food is heavy metals, Japanese nuclear waste from the Pacific, and further damaging a species on the brink, then yes, it's fucking awesome for you. How about sardines or herring, from cleaner waters, that are managed and easily replaced. Or is it that you like the taste of dolphin? T-R-O-L-L. Happy mothers day to your mom at the donkey show, she's "canning tuna" as we speak. 

Sun, 05/13/2012 - 16:30 | 2421907 maxmad
maxmad's picture

The rats are jumping!!

Sun, 05/13/2012 - 16:41 | 2421940 LetThemEatRand
LetThemEatRand's picture

There is no accountability at all for these people.  Being fired and keeping your ill-gotten gains does not count as accountability.  If I had made $10M year over year the last several years and then someone figured out I was really just a fraud who was gambling someone else's money and keeping the profits, I would have a hearty laugh and say "sucker!" on my way out the door. 

Sun, 05/13/2012 - 17:05 | 2422002 Dr Benway
Dr Benway's picture

You are exactly right. The decoupling of risk and reward is key to a lot of the problems on an individual, corporate and government level.

 

Everyone does this nowadays. Borrow to gamble and if you lose, try to deflect losses to someone else.

Sun, 05/13/2012 - 21:39 | 2422490 AlaricBalth
AlaricBalth's picture

Solyndra comes to mind.

Mon, 05/14/2012 - 09:40 | 2423370 Widowmaker
Widowmaker's picture

Incorporation IS government.

Pay up sukka, tbtf needs their bonuses.

Mon, 05/14/2012 - 09:46 | 2423406 Zero Govt
Zero Govt's picture

if it's not Bummas Democrats blowing up in Corzined gambling bets it's his major WS sponsors

add to that Bummas own Solyndra bet-gone-toxic and the poor President just hasn't got much going his way right now

Sun, 05/13/2012 - 21:11 | 2422467 philipat
philipat's picture

What about thae lying Aussie fucktard Blythe Masters? Only a few weeks ago she told CNBS in a carefully scripted PR piece that JPM would never, NEVER engage in Prop trading and simply hedged client positions. That nwo turns out to have been not only a maserpiece of bad timing which Dimon must have been involved in. To loose this kind of money on hedging client positions is not possible so the whole matter is now exposed for the lie that it was. Of course, Dimonlike Corzine "Knew nothing" but is now taking "Tough action" to rectify the problem. Jamie, here's some free advice: Fuck Off.

Mon, 05/14/2012 - 09:38 | 2423373 Widowmaker
Widowmaker's picture

No ONE saw it coming, but EVERYONE.

Fed is buying today.

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