JP Morgan CEO Jamie Dimon relieves Ina Drew and Achilles Macris of their duties

JP Morgan Chase is one of the biggest investment banks and brokerage companies in the world. However, last week, the bank was on the verge of losing in the tune of $2 Billion in a trading loss. Though the catastrophe was evaded at the nick of time but the top management has not ignored the situation. Key people responsible for the situation are being ostracized from JPM premises.

That includes some at the top seats, who oversaw the situation and/or aggravated it further.

Everybody at Wall Street or at least in the same business had this coming in the follow up to the $2 Billion faux pas. The process of firing the responsible has started in stages. The first stage includes the top tier involved in the trading. Of course, it does not include JP Morgan’s CEO, Jamie Dimon but the direct officials supervising the operations of the particular trade.

In the first phase of lay off is Dimon’s chief investment officer Ina Drew. Drew, 55, is the most powerful and well reputed woman on the Street. She was directly supervising the unit responsible for trading the $2 Billion.

Ms. Drew is the highest paid executive at the investment bank. Her 2011 salary accumulated to around $15 Million.

Next to follow Drew’s trail are Achilles Macris and Javier Martin-Artajo. Macris, who is in charge of the London-based desk that placed the trade and trader Martin-Artajo, a managing director on Macris’s team who initiated it under Macris’ supervision have been sent notices.

According to Wall Street Journal, the so-called London Whale,  Bruno Michel IksilIs is also expected to taste Dimon’s ire but so far official word has been spilled on his status.

In retrieving JPM’s reputation and the losses incurred after the incident, Dimon is expected to let more out of the bunkers. The bank’s shares fell 9.5% on Friday,  the trading loss has highlighted once again the need the regulate banks’ risk-taking abilities.

The investment bank is the officlal underwriter for Facebook’s IPO, which is touted to be the most important offering of the year. This kind of incident might force a dent on the bank’s repo before initial offering.

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Posted by Usman Khalid on May 14 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.