JPMorgan risk overseer was fired in 2007 for failed gambles
By Chris in Paris on 5/21/2012 11:37:00 AM
For the smartest guys ever who know risk better than any other bank, they look like the Keystone Kops. Even more disturbing is that there still are plenty of people who continue to think that the JPMorgan team is run by brilliant people.
I mean sure, besides losing badly elsewhere and launching a regulatory probe, what part didn't sound like a great hire? Add to that the label of "trader at heart" for the senior director in charge of risk and you have a real winner. Bloomberg:
Irvin Goldman, who oversaw risks in the JPMorgan Chase & Co. (JPM) unit that suffered more than $2 billion in trading losses, was fired by another Wall Street firm in 2007 for money-losing bets that prompted a regulatory probe, three people with direct knowledge of the matter said.
JPMorgan appointed Goldman in February this year as the top risk official in its chief investment office while the unit was managing trades that later spiraled into what Chief Executive Officer Jamie Dimon called “egregious,” self-inflicted mistakes. The bank knew when it picked Goldman that his earlier work at Cantor Fitzgerald LP led to regulatory sanctions against Cantor, according to a person briefed on the situation.
JPMorgan’s oversight of risk in its chief investment office has become a key issue as U.S. authorities examine the incident and lawmakers debate how to prevent banks from making wagers that might endanger depositors. Goldman was given the risk- oversight job after his brother-in-law, Barry Zubrow, 59, stepped down in January as JPMorgan’s top risk official, according to a person briefed on the matter. Less than a week after the loss became public, the bank stripped Goldman of those duties, appointing Chetan Bhargiri to succeed him.
By the way, why is Jamie Dimon still on the board of the NY Federal Reserve? Why is Elizabeth Warren the only person calling for his resignation?