Testifying before Congress yesterday, JPMorgan Chase CEO Jamie Dimon said that those involved with a transaction that involved a loss of $2 billion dollars, MAY have some of their pay taken by the company.
MAY have some of their pay taken by the company? What the fuck?
Dimon went on to say "It's likely there will be clawbacks."
Likely? Oh brother.
This is an issue that is right up my alley, so here goes.
During my sojourn at the too big to fail Lehman Brothers, my sole responsibility was to clear up trade issues similar to this. If, for whatever reason, a trade that did not settle within the regulated time (trade date plus three days), and there was a loss on that transaction, the trade in question was "busted" (cancelled), with the broker being charged against his or her commissions for any loss incurred, no matter the amount.
The most that was ever charged for a bad trade was just over $75,000. Suffice it to say that it was not a good day for that particular broker.
The most that was ever charged for a bad trade was just over $75,000. Suffice it to say that it was not a good day for that particular broker.
This is such a simple issue (at least to me), and there shouldn't be any question as to whether or not those responsible for this should be charged, because they should. Supposedly, it is the policy of JPMChase to recover any stock grants, options, and bonuses for from employees who exercise bad trade judgement, although they admit this is a policy that has never been enforced.
Looks to me like this is a good time to start that enforcement.
No comments:
Post a Comment