The title of a Yahoo! article released on May 14, 2012 is “JPMorgan CIO retires, Obama says proves REFORM case” (Web-site/URL: http://news.yahoo.com/jpmorgan-executives-expected-leave-over-loss-005855624–sector.html).
“The leader of JPMorgan Chase & Co’s hedging unit is retiring after trading losses that could end up exceeding $3 BILLION, a shortfall that President Barack Obama said might have led the government to step in had such losses struck a smaller bank”.
“The news of the losses has wiped nearly $19 BILLION from JPMorgan’s market capitalization in just TWO trading days and renewed the debate about financial regulation and the concept of being “TOO BIG to fail”. This could also describe GM under former CEO RICK WAGONER (Web-site/URL: http://en.wikipedia.org/wiki/Rick_Wagoner#Chief_Executive_Officer).
“President Obama told ABC‘s “The View” in an interview taped to air Tuesday (May 8, 2012)”,”This is THE BEST, or ONE OF THE BEST managed banks“. Is this A STATEMENT OF SUPPORT for Jamie Dimon? “You could have a bank that ISN’T as strong (and) ISN’T as profitable making those same bets and we might have had to step in. That’s exactly why Wall Street Reform’s so important“. We also have to wonder why the President was talking on “The View”, which is such an INFORMAL/CASUAL talk show? Wall Street Rerform, after all, is a SERIOUS issue.
“JPMorgan said Chief Investment Officer Ina Drew, 55, who was among the HIGHEST-PAID executives at the bank, had DECIDED TO (?) “retire from the firm“. Again, the “highest-paid” employees of a company/firm often DON’T deliver. “decided to “retire from the firm?” Surely, this “retirement” WAS NOT voluntary.
“She will be succeeded by Matt Zames, a trader by background who is WELL-VERSED (?) in risky financial bets. He was at one time employed at LONG-TERM Capital Management, a hedge fund whose 1998 collapse NEARLY CAUSED A GLOBAL FINANCIAL CRISIS. Zames has in past been tabbed as a potential successor to Dimon“. Matt Zames…”was at one time employed at Long-Term Capital Management, a hedge fund whose 1998 collpase NEARLY CAUSED A GLOBAL FINANCIAL CRISIS“. That certainly DOES NOT sound like someone who is “well-versed in placing risky financial bets”.
“The bank’s statement made no mention of two subordinates of Drew who were involved with the trades — London-based Achilles Macris and Javier Martin-Artajo — who sources had said would leave. A memo Zames sent to staff, a copy of which was obtained by Reuters, said only that Macris would “TRANSITION his … responsibilities“, implying that NOTHING MUCH WILL CHANGE.
“Zames wrote (in part) “I AM PROUD of the firm’s efforts over the past several days to address our mistakes and pleased to join the dedicated employees in our Chief Investment Office today (May 14, 2012)”.
According to Edward Shill, “chief investment officer of QCI Asset Management, which held more than 280,000 (JPMorgan Chase) shares as of March 31 (2012)”, “Dimon has FALLEN ON HIS SWORD, promised to take action (and) TOSSED A FEW PLAYERS UNDER THE BUS … nothing left to be done that is not already under way“. “fallen on his sword” and “tossed a few players under the bus” suggest that THE LATEST BLAME GAMES HAVE BEGUN.
“JPMorgan, the biggest U.S. bank by assets, also said that Mike Cavanagh, CEO of the Treasury & Securities Services group, would lead a team of executives overseeing its response to the losses. In appointing Cavanagh to coordinate the bank’s response to the loss, Dimon is turning to A LONG-TIME PROTEGE“. Let’s hope that “long-time protege” is predominantly in a PROFESSIONAL sense instead of a PERSONAL sense because we all know about GAO WEI and CUI XILING and the “FUTURE wife” scandal (Web-site/URL: http://www.se.cuhk.edu.hk/~wgao/publication/master-thesis.pdf). Let’s also note that HE LIED ON HIS CV because this man NEVER worked in Singapore and he DIDN’T leave for 2 YEARS after he got his PhD like everyone else has to: “I received Ph.D. in Information Systems from the Department of Systems Engineering and Engineering Management at The Chinese University of Hong Kong in 2010. Currently I AM AFFILIATED WITH THE SAME DEPARTMENT as a research assistant professor” (Web-site/URL: http://www.se.cuhk.edu.hk/~wgao/). How could he have left for 2 years? HE CLEARLY GOT SPECIAL PRIVILEGES BECAUSE OF A FAMILY RELATIONSHIP. He used this family relationship to claim that his then-GIRLFRIEND CUI XILING HAD TO get an MPhil because he had a Ph.D. Well, as it turns out, Gao DIDN’T have a Ph.D. HE DIDN’T EVEN HAVE HIS M.PHIL. CUI XILING got to CUHK to do her Ph.D. His now-wife CUI XILING is EVEN MORE of a disgrace. She only has THREE publications after taking EIGHT years to do her Ph.D.: normally, people take 3-5 years. Adding to this disgrace is the fact that Cui Xiling found the time to make TWO babies. According to “a former JPMorgan executive”, who was not/declined to be identified”, “Jamie usually gives him jobs (which are) HEAVY ON MANAGEMENT and STRATEGY“.
“One hedge fund manager who previously ran a proprietary trading book at JPMorgan said the bank’s public commitments to trim risk were at odds with its network of trading groups MAKING BETS INDEPENDENTLY, with only a handful of the bank’s most senior executives notified of their vast, complex exposures”. “This (CIO) group was COMPLETELY SEPARATE, COMPLETELY DISTINCT from the prop-trading unit. WE HAD NO CLUE about their prop book and THEY WOULD HAVE NO CLUE about ours for that matter“. This is equivalent to “If you don’t care what I think, why should I care what you think?” (Web-site/URL: http://www.youtube.com/watch?v=NgnAY_eXYbI).
Obama told ABC, “JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got and THEY STILL lost $2 billion and counting”. This is clearly a statement of FRUSTRATION, another characteristic of “Difficult People” (Web-site/URL: http://www.youtube.com/watch?v=NgnAY_eXYbI).
According to White House spokesman Jay Carney, “There is an investigation into what happened at JPMorgan that the SEC is (now) conducting“.
Finally, according to “a money manager who knows her (CIO INA DREW), but declined to be identified”, obviously because of the extreme sensitivity of this issue/situation, “Ina is an AMAZING investor. SHE’S DONE A REALLY GOOD JOB OVER A LOT OF YEARS. But (unfortunately), they ONLY remember your LAST trade“, especially when that “last trade” ends up costing your company $3 BILLION.
So, people may soon be calling for JAMIE DIMON‘s head. Yes folks, trouble on Wall Street is back. In fact, IT HAS NEVER FULLY GONE AWAY.