Oops! JPMorgan CIO Risk Chief Had Trading-Loss History

Were JPMorgan bosses asleep at the switch?  Irvin Goldman, who oversaw risks in the JPMorgan Chase & Co. (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 told Bloomberg.

JPMorgan appointed Goldman in February as the top risk official in its chief investment office while the unit was managing trades that later spiraled into what CEO Jamie Dimon called “egregious,” self-inflicted mistakes. The bank knew when it picked Goldman that his earlier work at Cantor led regulators to penalize that company, according to a person briefed on the situation.

JPMorgan’s oversight of risk in its chief investment office has become a focal point as U.S. authorities examine the incident and lawmakers debate how to prevent banks from making wagers that might endanger depositors. Goldman was given the risk-oversight job after his brother-in-law, Barry Zubrow, 59, stepped down in January as JPMorgan’s top risk official…..

Read all about it at http://www.bloomberg.com/news/2012-05-21/jpmorgan-cio-risk-chief-said-to-have-trading-loss-history.html