NYT: Discord at JPMorgan Unit Blamed in Huge Loss
Based on interviews with current and former traders at JPMorgan Chase, The New York Times reported that after contracting Lyme disease in 2010, Ina Drew, head of the bank’s investment office (CIO), was frequently absent from the office for a critical period, when her unit was making riskier bets, and her absences allowed long-simmering internal divisions and clashing egos to come to the fore.
The Times said, according to current and former colleagues, that discord in 2010 and 2011 contributed to the CIO’s losing trades in 2012. The Times also noted the bank’s trading loss is now said to equal at least $3 billion, and could rise further.
To read The New York Times article that appeared in the Sunday edition (5/20/12), click here.