Tuesday, January 22, 2013

Will the London Whale Devour Jamie Dimon?





Do whales swallow?  JP Morgan last week released a scathing 129 page report which details its widespread “failures” and missteps which led to a massive $6 billion loss at the mouth of the now infamous trader known as the “London Whale”.  In the bible story, the whale swallows Jonah, only to spit him out three days later. In this instance, the London Whale has already swallowed a good chunk of CEO Jamie Dimon’s pay.

What’s next? If charges of fraud against traders and managers surface at JP Morgan, will the whale swallow Dimon?  Remember, Dimon early in the crisis dubbed the matter nothing but a “tempest in a teapot.” The CEO’s disdain has backfired.  Now, he must be singing a different tune. Last week, the board of JP Morgan decided to cut his pay in half to a mere $11.5 million…..


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