Photo: By Michael Dawes on flickr
The fallout continues…JPMorgan credit derivatives trader Bruno Iksil — who became the so-called “London Whale” back in April for his massive positions — has been stripped of his trading responsibilities following the disastrous $2 billion trading loss related to derivatives in the bank’s chief investment office in London, the Wall Street Journal reports.
The newspaper also reports that Iksil is likely to leave the bank, but his fate isn’t entirely clear at this point.
But he’s not the only one who could be departing as part of the fallout. According to Bloomberg News, everyone in the London CIO unit faces being axed.
According to the Journal, three high-ranking execs including Ina Drew, a 30-year veteran of the bank who was head of risk management; Achilles Macris, who was the head of the desk that made the trades; and Javier Martin-Artajo, a managing director and trader on Macris’ team, are expected to leave this week.
Macris and Martin-Artajo have also been stripped of their trading responsibilities, the report said.
Last week, JPMorgan revealed the trading loss in the bank’s 10-Q filing. Soon after, CEO Jamie Dimon held a surprise conference call where he acknowledged it as an “egregious error.”
After the news of the trading blunder, shares of JPMorgan tumbled 9.28 per cent on Friday to close at $36.96. The stock was last more than 0.5% lower in pre-market trading on Monday.