Tags: JPMorgan | Stock | Whale | loss

JPMorgan to Reclaim Stock From ‘Whale’ Executives, WSJ Reports

Wednesday, 11 Jul 2012 07:52 AM

JPMorgan Chase & Co. plans to reclaim millions of dollars in stock from executives involved with trading losses, including former Chief Investment Officer Ina Drew, the Wall Street Journal reported.

The New York-based bank may announce the plan as early as July 13 along with its earnings results, the newspaper said, citing unidentified people familiar with the plan. The amount to be clawed back hasn’t yet been determined, the Journal said, citing one person familiar with the situation.

Other members of the Chief Investment Office, which was responsible for about $2 billion in losses on derivative trades, are also likely to face compensation clawbacks, according to the newspaper. Bruno Iksil, the trader known as the “London whale,” and his bosses Achilles Macris and Javier Martin-Artajo may also be asked to return pay, the people told the Journal.

Joe Evangelisti, a JPMorgan spokesman, declined to comment. Drew, Iksil and Macris didn’t return calls seeking comment, the newspaper said. Martin-Artajo’s lawyer didn’t respond to an e- mail, according to the report.

The bank on July 13 is expected to announce that the trading losses will cost JPMorgan more than $5 billion in the second quarter, the Journal said, citing people familiar with the situation. Future losses on the trade are estimated to stay below $1 billion, the people told the newspaper, and could result in profit of that much if the market moves in the bank’s favor.

JPMorgan is confident that losses have been capped because 80 percent to 90 percent of the bets have been closed out, the Journal said, citing the people. The bank also is expected to report that an internal probe found that risk failures were isolated to the CIO unit, according to the report.


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