NEW YORK (AP) — The executive responsible for trading strategy at JPMorgan Chase, one of the highest-ranking women in Wall Street, on Monday became the first casualty of the bank’s stunning $2 billion loss.
“We maintain our fortress balance sheet and capital strength to withstand setbacks like this, and we will learn from our mistakes and remain diligently focused on our clients, who count on us every day,” Mr. Dimon said.
JPMorgan, the largest bank in the United States, is seeking to minimize the damage from the trading mistake, which Mr. Dimon has conceded will complicate the efforts of banks to fight certain regulatory changes.
Ms. Drew, one of the highest-paid officials at JPMorgan Chase, offered several times to resign after Mr Dimon disclosed the trading loss on Thursday, a person familiar with the matter told the Associated Press on Sunday.
At least two other executives at the bank will be held accountable for the mistake, the person said.
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.
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.
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.
Mr. Dimon said he did not know the extent of the problem when he said in April that the concerns were a “tempest in a teapot.” The loss came in the past six weeks.
Mr. Dimon has said it came from trading in so-called credit derivatives and was designed to hedge against financial risk, not to make a profit for the bank.View Entire Story
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