Tuesday, July 31, 2012

Headscratcher of the Day: J.P. Morgan Awarded ‘Best Trader’ For Second Quarter





J.P. Morgan had something of an eventful quarter, but for KBW it stood out for reasons one might not immediately expect.  Irony does not appear to be a part of the recognition.

“Yes, we are aware that JPM experienced an embarrassing trading loss topping $5 billion in its Chief Investment Office leading to investigations by regulators and a halting of its share repurchase program,” KBW wrote. “However, despite this loss and market concerns over JPM’s internal controls, we are awarding the best quarter to JPM. A factor behind our decision is the strong earnings power demonstrated in the quarter from its core businesses lines.”

The “best trader” award is for J.P. Morgan’s investment banking operations, where its fixed-income and equities trading had some of the smallest declines of its peers. Not exactly the stuff of champions, but also not at all tied to the disastrous trade in the Chief Investment Office.  Still, for a quarter that saw J.P. Morgan executive hit hard on one ugly mistake, the title might be a small consolation for the firm….


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