JP Morgan CIO's Former Risk Manager Had A Terrible Record As A Trader

Risk The Boardgame

Photo: Photo Bucket: CarolynPan

The skeletons in JP Morgan CIO’s closet just keep spilling out in the wake of the bank disclosing what may now be a $5 billion trading loss.JP Morgan’s former chief risk officer in its CIO Irvin Goldman—who was recently demoted to an advisory role and is expected to leave the bank—had a shady history as a trader at JP Morgan and his former employer, Cantor Fitzgerald and was once investigated by the NYSE for conflict of interest trading, the Wall Street Journal reported.

Goldman, who joined JP Morgan in 2008, lost between $10 million to $15 million the same year as a trader for the bank’s CIO, according to the WSJ.

He was put on leave after the incident, but then appointed the chief risk officer for the CIO in 2010—a move that many is questioning in retrospect after JP Morgan’s huge losses were unveiled. Some are also questioning the influence that Goldman’s brother-in-law Barry Zubrow, JPM’s head of corporate regulatory affairs, may have had in his jobs at the bank, according to the WSJ.

But before his JP Morgan blunders, Goldman was fired from another prominent Wall Street firm, Cantor Fitzgerald, for racking up over $30 million in losses from trades.

While Goldman was at Cantor, he was also investigated by the NYSE for what sounded suspiciously like insider trading….  From the WSJ:

Between January and December 2006, according to an NYSE Arca document, Cantor Fitzgerald’s chief executive officer for debt capital markets was day-trading the same biotechnology securities in his personal and firm accounts, and the firm failed to monitor for conflicts of interest and certain violations of NYSE rules.

Mr. Goldman’s title at the time was chief executive officer for debt capital markets. People familiar with the document confirm the unnamed executive is Mr. Goldman.

The NYSE Arca document outlining the investigation is here >

According to Goldman’s FINRA records, he has previously worked at Salomon Brothers, Credit Suisse and BCG Securities. He is no longer registered as a broker with FINRA.

SEE ALSO: A Complete Timeline of JP Morgan’s Big Trading Blunder

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.