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News out of JP Morgan continued to be negative, as yesterday, the company announced that they would suspend share buybacks in the wake of a $2-billion-plus trading loss in its chief investment office, the bank’s CEO said, as he declined to give a “running tally” on the loss.
Reports also surfaced that Irvin Goldman, who oversaw risks in the JPM unit that suffered more than $2 billion in trading losses, was fired by another Wall Street firm in 2007 for money-losing bets that prompted a regulatory sanction at the firm, Cantor Fitzgerald LP, three people with direct knowledge of the matter said. The Wall Street Journal also reported that the company's trading loss may exceed $5 billion. As a result of the trading loss, shares in JPM are down over 20%. Internal stress within JPM executive suite appears to be building as according to the Wall Street Journal, CEO Jamie Dimon personally approved the strategy that led to the trades, without monitoring how they were executed, the newspaper said, citing people familiar with the matter that it didn’t identify. His failure to closely regulate that activity caused resentment among executives whose departments face tighter oversight, according to The Journal.
JP Morgan (JPM : NYSE : US$32.49), Net Change: -1.00, % Change: -2.99%, Volume: 86,987,167