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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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Fri, 07/13/2012 - 06:47 | 2612116 sunnydays
sunnydays's picture

When will Dimon leave?

Fri, 07/13/2012 - 06:55 | 2612126 GetZeeGold
GetZeeGold's picture

 

 

Women, children and rats first.

 

Fri, 07/13/2012 - 07:02 | 2612144 Dr Benway
Dr Benway's picture

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

Fri, 07/13/2012 - 07:26 | 2612188 JackT
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.

Fri, 07/13/2012 - 08:52 | 2612385 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Women only have themselves to blame, thanks to feminism.

Children, OTOH, that's just fucked up.

Fri, 07/13/2012 - 08:52 | 2612382 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

http://www.youtube.com/watch?v=zisjRgcuL9k

 

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

Fri, 07/13/2012 - 07:02 | 2612146 r00t61
r00t61's picture

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

Fri, 07/13/2012 - 07:21 | 2612182 GetZeeGold
GetZeeGold's picture

 

 

Sooooo actually pretty soon huh?

 

Fri, 07/13/2012 - 07:03 | 2612147 Gringo Viejo
Gringo Viejo's picture

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

Fri, 07/13/2012 - 06:49 | 2612118 sudzee
sudzee's picture

JPM to restate Q1 earnings.

Fri, 07/13/2012 - 06:50 | 2612119 BandGap
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!

Fri, 07/13/2012 - 06:52 | 2612123 BandGap
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.

Fri, 07/13/2012 - 06:53 | 2612125 neidermeyer
neidermeyer's picture

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

Fri, 07/13/2012 - 06:52 | 2612127 Downtoolong
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.   

Fri, 07/13/2012 - 06:53 | 2612128 negative rates
negative rates's picture

Good, now they can start their very own hedge fund and attract their regular clients. Everybody wins.

Fri, 07/13/2012 - 06:54 | 2612129 ArkansasAngie
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.

Fri, 07/13/2012 - 07:02 | 2612145 All Out Of Bubblegum
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.

Fri, 07/13/2012 - 07:15 | 2612163 Benjamin Glutton
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.

Fri, 07/13/2012 - 07:06 | 2612149 Fritz
Fritz's picture

Nothing to see here...move along.

Same as it ever was...

Fri, 07/13/2012 - 07:17 | 2612169 Alex Lionson
Alex Lionson's picture

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

Fri, 07/13/2012 - 07:32 | 2612204 Max Fischer
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.

Fri, 07/13/2012 - 09:29 | 2612520 fuu
fuu's picture

?!?

Fri, 07/13/2012 - 07:34 | 2612210 dark pools of soros
dark pools of soros's picture

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

Fri, 07/13/2012 - 08:17 | 2612287 gookempucky
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.

Fri, 07/13/2012 - 08:34 | 2612326 insanelysane
insanelysane's picture

But who is going to hedge?

Fri, 07/13/2012 - 09:26 | 2612526 drivenZ
drivenZ's picture

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

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