With JPM Set To Report, Rest Of Whale Team Leaves Company

Tyler Durden's picture

As JP Morgan prepares to report how much the blow up of its CDS in Q2 "boosted" earnings, not to mention how much "improving" conditions forced it to reduce loss reserves, the WSJ reports that the rest of "whale team", or those responsible for the CIO's $5 billion loss, have left the firm.

From WSJ:

Three London-based employees at the center of J.P. Morgan Chase JPM -1.59% & Co.'s multibillion-dollar trading blunder, including one known as the "London whale," have left the bank, according to people familiar with the company.


Achilles Macris, Javier Martin-Artajo and Bruno Iksil are the latest casualties of an episode that already has cost the bank $25 billion in market value and tarred the reputation of Chief Executive James Dimon as Wall Street's savviest risk manager.


All three worked for the Chief Investment Office, or CIO, the once-obscure unit that invests the bank's excess cash. Their outsize bets on certain corporate credit indexes led to just over $5 billion in losses in the second quarter—a figure the company is expected to disclose Friday as it discusses earnings for the just-ended quarter with investors.


Messrs. Macris, Martin-Artajo and Iksil were stripped of trading duties after the company became aware of the ballooning losses. They stayed on as employees past Ms. Drew's departure as the bank worked to unwind the trades and complete an internal review of what happened, though they had been expected to leave the company.


As of Thursday, the three men no longer were listed in the company's internal employment database, according to people close to the bank.

And with that the unwind of the JPM IG9-10 Year trade, courtesy of Blue Mountain of course, is likely over, because as we said back on May 15, only the departure of Bruno is the one sure bet that the bulk of the losing trade had been unwound: "As for the question of how much additional P&L loss JPM has sustained from Friday through today is a different matter entirely, and we are confident the next announcement from JPM will come momentarily, coupled with the announcement that Bruno Iksil, the last remnant of the CIO desk, and now having completed his duty of unwinding the trade that brought so much pain for Jamie Dimon, has been retired."

Now the only question left is how much recurring future net income has Iksil & Cie taken with him. If history is any indication, the market will soon realize that anywhere between 10 and 20% of the firm's net income is now permanently gone as the biggest internal hedge fund is fully unwound.

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sunnydays's picture

When will Dimon leave?

GetZeeGold's picture



Women, children and rats first.


Dr Benway's picture

It's funny how they probably regard themselves as sharks, yet everyone else sees them as whales, squid and amoebae.

JackT's picture

Rats always go first, and they typically knock the women and children to the ground on their way out. Don't forget it.

Dr. Kenneth Noisewater's picture

Women only have themselves to blame, thanks to feminism.

Children, OTOH, that's just fucked up.

Dr. Kenneth Noisewater's picture



"Women, Children, Red Indians, Spacemen, and sort of idealized versions of the complete Renaissance Man first!"

r00t61's picture

When he gets appointed Secretary of the Treasury, after Geithner retires and moves on to become head of the SEC.

GetZeeGold's picture



Sooooo actually pretty soon huh?


Gringo Viejo's picture

When he does the perp walk. In other words, never.

sudzee's picture

JPM to restate Q1 earnings.

BandGap's picture

Fleas start to leave when the body gets cold. Then the vermin move in for a meal. And a whale is a whale of a meal!

BandGap's picture

 "the once-obscure unit that invests the bank's excess cash." Hahahahahaaaaaaa!

They took care of that now, didn't they? What a simplitic way of looking at giving it to investors two fingers at a time. Jeez.

neidermeyer's picture

If I knew how to post the "Nelson" (ha-ha) kid from Simpsons I would..

Downtoolong's picture

latest casualties

Sad to say, I doubt it. These people are like gold to a hedge fund. They’ve got just the skills and reckless mindset most firms on Wall Street and the City savor. These people are stars in the shadows of their world. Give me risk or give me death. But, no one ever dies in this industry, do they? They just move on to the next game table. I bet even Madoff has plans in his mind to get back into the game one day.   

ArkansasAngie's picture

If the bulk of your income comes from "market: speculation then is not your occupation market speculator and not banker?

Spin off the banking group ... it isn't their main line of business.

Oh ... right ... there is no banking group.

All Out Of Bubblegum's picture

JPM controls half the food stamps in America. They have the government and its stupid subjects by the balls. Imagine DC or Chicago if there was a "glitch" in the EBT system. 

Ain't nothing ever gonna happen to JP's Organ.

Benjamin Glutton's picture

exactly. 25 million hostages.


so they closed the London unit and buried the bodies. hard to believe the US no longer has the will to conduct proper regulatory enforcement.

Fritz's picture

Nothing to see here...move along.

Same as it ever was...

Alex Lionson's picture

The London Whale has been beached, how many are left?

Max Fischer's picture

The ultimate Boaz checkmate. Very impressive. I wonder what brand of suits he wears? Probably Stefano Ricci, but balanced with a Tom Ford shirt to keep it contemporary. I bet he's got a deposit at ONE57.

dark pools of soros's picture

They lost 5bil. So somewhere made 5bil. They will be re-employeed in one of those yards

gookempucky's picture

All three worked for the Chief Investment Office, or CIO, the once-obscure unit that invests the bank's excess /stolen cash.

fixed it.

insanelysane's picture

But who is going to hedge?

drivenZ's picture

Iksil Capital is raising $ in 3....2....1