The CIO synthetic credit trading unit at the center of the trading blunder that has cost J.P. Morgan & Co. (JPM) losses of $5.8 billion, but the bank is yanking back compensation from executives at the center of it all.
The clawbacks will be imposed on a case by case basis, according to statements made during Friday�s conference call.
Investors were told l that all managers in London with direct responsibility for the synthetic trading portfolio have been separated from the firm and none are getting severance pay. The firm will also reclaim�two years of total annual compensation from these people.
CEO Jamie Dimon says Ina Drew, the former executive who ran the company�s Chief Investment Office, or CIO, came forward and �offered to give up a significant amount of compensation equivalent to the maximum claw back amount.�
As for all other individuals, including Dimon, J.P. Morgan�s board issued a statement saying that 2012 performance-year compensation and�clawbacks, if appropriate, will be determined in the ordinary course�considering.”
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