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JPMorgan Reconstruction Unit that Housed the "London Whale"

4-Apr-14
JPMorgan Reconstruction Unit that Housed the "London Whale"

JP Morgan has restructured its chief investment officer, " London Whale" 's house , in a further step strategy can result in a loss of more than 6 billion U.S. dollars of risk , according to people familiar with the matter.
In an internal memo the bank said Monday that it combines the CIO and treasury organizations, reflecting the traditional asset-liability management of banks and other functions.

Craig Delaney was appointed joint head of the unit. After he took over the CIO in September 2012, JP Morgan trader nicknamed the "London Whale" torture amassed billions of dollars in losses, a huge credit derivatives positions.

Over- CIO's investment bank deposits. Treasury funds managed by banks. In many organizations, the combination of the two functions. JP Morgan to give more leeway, its chief information officer, trying to earn billions of dollars in excess deposits, a strategy that backfired affair with the London whale returns.

Under Mr. Delaney’s leadership, the bank said it had cash savers credit derivatives bet stop. Instead, all it does is put cash loans secure investments, such as U.S. Treasuries or parked at the Fed.
"Global asset and liability management responsibilities with the company's further integration will help us deliver on our company's strategic focus , and support our efforts to strengthen and streamline our infrastructure , processes and controls , " Matt Zames, Chief Operating Officer , said the memo.
As part of the reorganization, Sandiequan O'Connor, who is the treasurer of JP Morgan Chase, will become chief regulatory affairs officer, succeeding Tim Ryan, who is the vice-chairman of the few hands-on roles.

Mr. Ryan , aged 68 , from the Securities Industry and Financial Markets Association , a powerful lobbying group returned to JP Morgan Chase in January last year . Mr. Ryan, who worked at the bank between 1993 and 2008, back when it was reeling under the regulatory pressure.

Mr. Ryan organized a series of new rules to deal with the banks - including the capital, "living wills" and consumer banking - that is, by 2010 the U.S. Dodd - Frank Act and the international Basel came.
He admitted that the move is to change the provisions of the protracted battle for the impending senior management is almost over. Ms. O’Connor’s role is to enforce the rules of the bank's more suitable.
"She has served as Under Secretary of the Treasury during the era of unprecedented change and her leadership, we have made ??improvements to the material to the company's liquidity position and stress management framework, “said Mr. Zames.

Resign in the latest personnel changes follow the sudden resignation of the bank's Mike Kavanagh, co-head of investment banking, who moved to Carlyle, the private equity house last week, and Blythe Masters, head of commodities this week.