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JPM's Punshiment: Two Years Of Clawbacks For Three Traders

Tyler Durden's picture




 

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.

From AP:

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.

 

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Fri, 07/13/2012 - 09:32 | 2612559 Jim in MN
Jim in MN's picture

SIEZE THEM, BITCHES!

Fri, 07/13/2012 - 09:36 | 2612580 vast-dom
vast-dom's picture

basically exposes the entire system, legal and regulatory for what it is. and what are we the sheeple doing about it?

Fri, 07/13/2012 - 09:38 | 2612588 GeneMarchbanks
GeneMarchbanks's picture

Bitching. Mostly. Also anxiously hoarding minerals for some reason only known to themselves.

Fri, 07/13/2012 - 09:42 | 2612601 david_a_levastre
david_a_levastre's picture

The shiny attribute might just be it.

Fri, 07/13/2012 - 09:54 | 2612649 Unprepared
Unprepared's picture

** threw up a little in my mouth **

 

I wish the Dimon(d)s get whipped and salted and their nails (or claws) removed so that they can't scratch their backs.

Fri, 07/13/2012 - 11:10 | 2612962 derek_vineyard
derek_vineyard's picture

common joe thats screws up-------------> unemployment line for 2years , then homeless

Fri, 07/13/2012 - 09:42 | 2612599 LawsofPhysics
LawsofPhysics's picture

Correct, yet people still belive that CONgress actually represents them.

The people in my area have been getting physical (as in physical assets of real value) for over 20 years, aside from a real revolution, there isn't anything else that can be done.  ALL eCONomies are really local after all.  Build the world you want to live in from the inside out.

Fri, 07/13/2012 - 09:46 | 2612605 Divided States ...
Divided States of America's picture

They should clawback all the profit Barclays (and all the other effin banks) who rigged Libor that caused me a ton of money on extra mortgage I had to pay and interest lost these past decade (and maybe past two decades). This is fuckin BS.

Oh look, markets ramping again on nothing...big surprise its also rigged.

Fri, 07/13/2012 - 09:54 | 2612641 The trend is yo...
The trend is your friend's picture

AAhhh Justice has ben served.  Now i'll be able to go back and put my hard earned money in the market again knowing people just can't get away this type of thing

Fri, 07/13/2012 - 10:30 | 2612820 Peter Pan
Peter Pan's picture

The so called clawback is probably a load of bullshit. Chances are they gave these traders a pay rise to make up for the lost bonuses or may have even given them a loan (interest free) with which to pay back the bonuses. Loan is subssequently written off when no one is watching.

Fri, 07/13/2012 - 09:32 | 2612561 Coldfire
Coldfire's picture

The karma is going to be a bitch.

Fri, 07/13/2012 - 09:33 | 2612564 LoneStarHog
LoneStarHog's picture

Molon Labe

Fri, 07/13/2012 - 10:13 | 2612733 Bob
Bob's picture

Nah, it's just a few bad apples:

http://www.youtube.com/watch?v=Ci-UoSFfbtc

Fri, 07/13/2012 - 09:34 | 2612577 azzhatter
azzhatter's picture

Firing squad- I'll volunteer to fire first

Fri, 07/13/2012 - 09:46 | 2612579 hedgeless_horseman
hedgeless_horseman's picture

 

 

 _____________________________________

Have you lost money in JPM stock?

Call us today!

1-800-SUE-CHASE

_________________________________

 

Fri, 07/13/2012 - 09:53 | 2612639 Hype Alert
Hype Alert's picture

The stock is up over 4% at the moment.  The only people that have lost money are taxpayers and their clients.  Change the ad.

Fri, 07/13/2012 - 10:00 | 2612662 hedgeless_horseman
hedgeless_horseman's picture

 

 

JPM down -10.9% over 1 year, -29.5% over 5 years.

Yes, short sellers could sue, too.

Fri, 07/13/2012 - 10:06 | 2612692 Hype Alert
Hype Alert's picture

Not at all.  Shorting in this market will get your head handed to you.  There is no market clearing mechanism anymore.  Even outright fraud by the "special" people is ignored.

 

Just like Geithner knowing LIBOR was rigged.  All he did was write a letter?  But it is admission he knew.  Someday people might figure that one out.

Fri, 07/13/2012 - 09:54 | 2612645 Swarmee
Swarmee's picture

How could anyone possibly lose money unless you are short them?

Effing UP 4+% on admitting they lost more than double initial estimates and also comitting criminal fraud on a super-massive scale.

Whiskey Tango Foxtrot!?

Fri, 07/13/2012 - 10:07 | 2612700 realitybiter
realitybiter's picture

Its a tricky trade.  Zero is a lock, only it will take a while.  Today these ADD algoes are jerking each other off because they now know, "it ain't that bad and look we have full disclosure."

right

 

Why are they given a pass?

What if Apple spent a couple of years mismarking the costs of their material and boosted profits?   

I know.

That's different.

No its not.

 

Don't bank at Chase - one day you will be corzined.  And the full retard of the matter is Chase pays shitty rates.  Which begs the question "Why bank at Chase?"

 

Fri, 07/13/2012 - 09:37 | 2612583 LawsofPhysics
LawsofPhysics's picture

Until there are real consequences for bad behavior, nothing will be "fixed". Nothing short of a revolution fixes anything now.

Is anyone really suprised?  The banks and financial houses own your representative government and the regulators.

Same as it ever was.

Fri, 07/13/2012 - 10:05 | 2612686 MillionDollarBoner_
MillionDollarBoner_'s picture

You can't PUNISH people for doing GOD'S WORK

Fri, 07/13/2012 - 09:37 | 2612587 Sutton
Sutton's picture

Claw back Dimon's loot.

Fri, 07/13/2012 - 09:39 | 2612591 Lost Wages
Lost Wages's picture

Bankers are pathetic losers who could never succeed if they had to play by the rules.

Fri, 07/13/2012 - 09:46 | 2612610 Wakanda
Wakanda's picture

The Second American Revolution.   Now unfolding in a neighborhood near you!

Fri, 07/13/2012 - 09:50 | 2612619 midgetrannyporn
midgetrannyporn's picture

You people are just jealous of the fascist JPM and the fascist WFC and the fascist GS et al. They perform a vital function that deserves trillions of clownbux in bonuses. /sarc

Fri, 07/13/2012 - 09:53 | 2612634 yabyum
yabyum's picture

Well it is God's work you know.

Fri, 07/13/2012 - 09:56 | 2612651 RobotTrader
RobotTrader's picture

Los Angeles Business Journal reported that JPM is paying the highest price per/SF for a branch in Santa Monica in Los Angeles history.

 

And right now, they have taken over a lease on a former Blockbuster location at the busiest, most visible location in Manhattan Beach, at Manhattan Beach Blvd. and Sepluveda.

And just last year, they just paid top dollar to buy the most prime retail spot in South Redondo Beach at Torrance Blvd. and PCH.

JPM is definitely not hurting for money and they are building brand new branches everywhere in Los Angeles, paying top dollar for the best locations.

Fri, 07/13/2012 - 10:02 | 2612674 Infinite QE
Infinite QE's picture

Blackstone bought the top in NYC real estate when it bought out Sam Zell's porfolio. Dumb money always buys the top. 

 

Look at the stock performance of JPM against, well, anything. Obliterated.

Fri, 07/13/2012 - 10:08 | 2612706 hedgeless_horseman
hedgeless_horseman's picture

 

 

Robo is correct.  Chase is building new branches everywhere, here, in Houston.

Fri, 07/13/2012 - 12:40 | 2613283 jack in the box
jack in the box's picture

There are 3 Chase branches within 5 miles of me, all on the same road...One used to be a WAMU

Fri, 07/13/2012 - 09:55 | 2612655 Burr's 2nd Shot
Burr's 2nd Shot's picture

Thank God this is over, finally.  Once again, the firm was proactive in dealing with these issues, and demanded a strict punishment in exchange for these mistakes.

Now, JPM can get back to focusing on its core proficiencies and serving its customers.

*Dammit, the <SARC> button appears to be jammed*

Fri, 07/13/2012 - 10:05 | 2612685 hellas4life
hellas4life's picture

no clawbacks from the mortgage debacle?

Fri, 07/13/2012 - 10:08 | 2612702 Amish Hacker
Amish Hacker's picture

Just a few bad apples, let's move on, people, without admitting any wrong-doing.

Fri, 07/13/2012 - 10:16 | 2612751 Bob
Fri, 07/13/2012 - 10:13 | 2612731 bourbondave
bourbondave's picture

Clawbacks?  Are clawbacks part of their employment agreements?

Fri, 07/13/2012 - 10:16 | 2612746 Richard R
Richard R's picture

Why would Ina Drew agree to give back $20 million or more without even a fight? Any thoughts?

Fri, 07/13/2012 - 10:16 | 2612749 williambanzai7
williambanzai7's picture

Claw back? argggggh, where's me cat n nine Merkels.

Fri, 07/13/2012 - 10:23 | 2612784 CheapBastard
CheapBastard's picture

"Crime Pays" is what this signals to Wall Street (and The City of London).

Fri, 07/13/2012 - 10:36 | 2612836 Harriet Wanger
Harriet Wanger's picture

We can only hope that a legislator, a regulator, or some über-rich person gets screwed, then we'll see some real action, by cracky.

Fri, 07/13/2012 - 11:19 | 2612997 Yellowhoard
Yellowhoard's picture

It's like some psycho walks into a public school and rapes the cheer leading squad, kills the teachers, burns down the school and get's charged for the Snickers bar that he grabbed on his way out of the burning building.

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