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Three senior executives at JP Morgan may quit: Report

Last updated on: May 14, 2012 15:00 IST

Three senior executives at JP Morgan may quit: Report

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Three senior executive of JP Morgan Chase & Co's are expected to leave over the US-based global banking giant's over USD 2 billion loss on derivative trades, says a media report.

"Three high-ranking officers at the center of JP Morgan Chase & Co's giant trading blunder are expected to leave the firm this week," the Wall Street Journal reported, citing an unnamed source familiar with the matter.

The officials expected to leave are Ina Drew, who has run the risk-management group tied to the losses since 2005, Achilles Macris, who was in charge of the London-based operation that placed the questionable trades, and trader Javier Martin-Artajo, the report said.

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Photographs: Eduardo Munoz/Reuters

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Till Thursday, the bank had lost USD 2.3 billion on a credit derivatives trade gone awry, but that figure grew by about USD 150 million on Friday, the report said.

Moreover, executives are prepared for another USD one billion of possible losses this quarter from these positions, as well as another USD one billion of potential losses over the next year or so, the report said.

That would mean a possible total loss of more than USD 4 billion, though the positions also could rebound in value, slicing any loss, it added.

The three officials are exiting because of their direct involvement in the mistakes that led to the losses.

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Image: A policeman stands guard outside the JP Morgan headquarters in New York
Photographs: Eduardo Munoz/Reuters
Tags: USD , JP Morgan

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The report said that Drew initially was dismissive of concerns about the trading positions. But once the size of the losses became apparent to many in the company, she offered her resignation.

That resignation is expected to be accepted by Chief Executive Officer James Dimon as early as Monday, it added.

The report said that trader Bruno Michel Iksil, nicknamed the "London Whale" for the big positions he took in credit markets, could depart as well, but the timing was unclear.

According to the news report, all the four executives declined to comment.


Photographs: Reuters

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