Three top executives at JPMorgan are expected to resign this week in the wake of a $2 billion trading loss.
The Wall Street Journal reported on Sunday that the three include Ina R. Drew, the head of the risk-management division responsible for the loss, along with the top executive and a managing director at the London branch that placed the trades under her direction.
According to several JPMorgan executives, Drew had offered her resignation several times since the extent of the losses became known in late April, but CEO Jamie Dimon had previously refused to accept it.
The situation changed however, when Dimon revealed the loss on Thursday and it led to a 10% drop in the firm’s stock price the next day. “We made a terrible, egregious mistake,” Dimon has since admitted. ‘There’s almost no excuse for it.”
According to the New York Times, Drew’s problems arose from her belief that the derivatives trades she authorized could protect the bank from Europe’s economic problems while also earning a profit. When market conditions changed in April, however, she was overly slow to respond, resulting in that massive loss. Drew had been the fourth-highest officer at the company last year, earning $14 million.
Raw Story is a progressive news site that focuses on stories often ignored in the mainstream media. While giving coverage to the big stories of the day, we also bring our readers' attention to policy, politics, legal and human rights stories that get ignored in an infotainment culture driven solely by pageviews.
Founded in 2004, Raw Story reaches 5 million unique readers per month and serves more than 19 million pageviews.