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3 to lose jobs at JPMorgan over $2B loss
Question of the Day
NEW YORK — JPMorgan Chase is expected to accept the resignation of one of the highest-ranking women on Wall Street after the bank lost $2 billion in a trading blunder, a person familiar with the matter said Sunday.
The bank will accept the resignation of Ina Drew, its chief investment officer, the person told the Associated Press, speaking on the condition of anonymity because the person was not authorized to discuss the decision publicly.
Ms. Drew, 55, one of the highest-paid officials at JPMorgan Chase, had offered to resign several times since CEO Jamie Dimon disclosed the trading loss on Thursday, the person said. Pressure built on the bank over the weekend to accept.
At least two other executives at the bank will be held accountable for the mistake, the person said.
The Wall Street Journal reported Sunday that Achilles Macris, who heads the London-based desk that placed the trades, and trader Javier Martin-Artajo, a managing director on Mr. Macris’ team, will leave the firm this week.
The Journal also reported that Bruno Iksil, the JPMorgan trader identified as the “London whale” because of the giant bets he placed, was also likely to leave, but the paper reported that it was not clear when that would happen.
Mr. Dimon has said the mistake will complicate the efforts of banks to fight certain regulatory changes three years after the financial crisis.
JPMorgan’s disclosure has led lawmakers and critics of the banking industry to call for stricter regulation of Wall Street. Many post-crisis rules governing risk-taking by banks are still being written.
Ms. Drew oversaw the division of the bank responsible for the loss. She was paid $15.5 million last year and almost $16 million in 2010, making her one of the highest-paid officials at JPMorgan, according to a regulatory filing.
Ms. Drew declined comment through a bank spokeswoman.
Kristin Lemkau, a spokeswoman for JPMorgan Chase, also declined comment.
The surprise loss has been a black eye for the bank and for Mr. Dimon, who is known in the industry both as a master of risk management and as an outspoken opponent of some proposed regulation since the crisis.
Mr. Dimon said in a TV interview aired Sunday that he was “dead wrong” when he dismissed concerns about the bank’s trading last month.
“We made a terrible, egregious mistake,” Mr. Dimon said in an interview that was taped Friday and aired on NBC’s “Meet the Press.” “There’s almost no excuse for it.”
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