JPM's Punshiment: Two Years Of Clawbacks For Three Traders
Behold Newton's 3rd law of Fraudics: Every gross fraudulent action has a laughably inadequate and unequal wristslap reaction. For years of mismarking CDS and the CIO 'Mistake', which incidentally everyone at JPM knew about for quarters, and where JPM thought it could manipulate any market it wants simply by sheer scale and due to being the market itself (just like the Fed), the response is: 2 years of clawbacks for the key exec responsible. In other words, just like Goldman paid a "massive" SEC fine of a few hundred million for activity that allowed it to make billions in profits, so those who have made tens of millions for years end up having to pay back one or two years of ill-gotten gains. And all shall be well.
Dimon said Friday that Ina Drew, the bank's former chief investment officer, who left after the trading loss came to light, had volunteered to give back the maximum possible amount of pay.
The maximum appeared to be two years' worth of pay. Drew made $15 million in 2011.
Mike Cavanaugh, who is leading a team of JPMorgan executives overseeing the trading loss, said the bank would also seek to revoke two years' worth of pay from other top managers tied to the trade.
That procedure is known as a "clawback." It would be the first time JPMorgan exercised such a procedure.