JPMorgan Scandal Claims Its First Casualty
The first executive head to roll at JPMorgan Chase will be Ina R. Drew, the chief investment officer responsible for overseeing the trades that led to the $2 billion trading loss that was announced on Thursday. The New York Times is reporting that Drew's been offering her resignation since the size of the bank's losses became apparent in April, and JPMorgan C.E.O. Jamie Dimon will finally accept her resignation on Monday.
RELATED: Jamie Dimon Explains Himself to Congress
Two other traders are expected to resign on Monday, but the "London whale" is reportedly still at large. The Times says Bruno Iksil is "under scrutiny" but his future seems to remain safe for now.
RELATED: The One Quote Jamie Dimon Probably Hopes Won't Come Back to Haunt Him
Dimon went on NBC's Meet the Press on Sunday and tried to own up for his bank's mistakes. He used the same "egregious mistake" line that he gave when the loss was announced, but he also subtly criticized Drew's performance when he said, “We know we were sloppy. We know we were stupid. We know there was bad judgment." Drew was reportedly trying to protect the bank from losing money over Turmoil in Europe when she made her final mistakes:
RELATED: What Color Will Jamie Dimon's Parachute Be?
Executives said that within the last several months, Ms. Drew told traders at the bank’s chief investment office to execute trades meant to shield the bank from the turmoil in Europe. As the problems deepened on the Continent, Ms. Drew thought those bets could protect the bank from losses and even earn a tidy profit, these employees said.
But when market tides abruptly shifted in April and early May, Ms. Drew’s instructions to traders to scale back what had become a gigantic bet came too late to avoid racking up losses that could eventually exceed the current $2 billion estimate.
Drew made $14 million last year, which is enough to make her the fourth-highest paid employee at JPMorgan and enough for the Times to label her "one of the most powerful women on Wall Street." She's been with the company for thirty years, and was reportedly one of Dimon's most trusted lieutenants.
