Three-executives at JPMorgan Chase will step down from their post as the bank suffered a $2 billion trade loss. The Wall Street Journal identified one of the three high-ranking executives as Ina Drew, head of the risk-management division at the bank and said to be accountable for the loss. It was also reported that Bruno Iksil, JPMorgan Trader known as the “London Whale”, will also leave, but it was not stated when.
Last Friday, 10 percent was cut-off from JPMorgan’s stock price. “We made a terrible mistake. There’s no excuse for it,” stated CEO Jamie Dimon last Friday on NBC’s ‘Meet the Press’. With the bank almost suffering from the fatal loss, Dimon announced they are open to inquiries from regulators. He also promised to find out what really happened so everyone at the bank can learn from the mistake.
Recently, Wall Street issued a regulation known as the Volcker rule. This prevents banks from doing certain kinds of trades for profitable reasons. Dimon announced the loss occurred during the past six weeks as the bank traded in credit derivatives to evade financial risks. With that, the bank would have not fallen under the regulation. He also supports the government’s authority to dismantle banks and eliminate shareholder equity. He assures, however, that JPMorgan is very strong, as it is the largest bank in the United States.