JPMorgan “considering” taking back bonuses after unit loses $2bn

Why are they only considering and not actually doing? The problem on Wall Street has repeatedly been the failure to suffer any consequences from gambles that lose. Nobody on Wall Street ever had to pay back a penny of the bonus money they received for gambles that failed during the initial round of the crisis so what lesson was learned? None.

The banks lost and then gladly accepted lifestyle saving bailouts so they kept doing what they had been doing, knowing that there are never any negative consequences. Congress has too many chumps and politicians who are owned by Big Finance that find this acceptable, so the problem will keep repeating itself until someone steps in.

For Wall Street to truly reform, there have to be painful and serious consequences including clawbacks and perhaps prison terms. Somehow I’m not confident in either but would love to be surprised. Bloomberg:

JPMorgan Chase & Co. (JPM), the biggest U.S. bank, will consider reclaiming incentive pay from employees including former Chief Investment Officer Ina Drew after her unit had a $2 billion trading loss, said two senior executives.

The lender can cancel stock awards or demand they be repaid if an employee “engages in conduct that causes material financial or reputational harm,” JPMorgan said in its annual proxy statement. The company will claw back pay if it’s appropriate, said one of the executives, who asked not to be identified because no decisions have been made.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

Share This Post

© 2021 AMERICAblog Media, LLC. All rights reserved. · Entries RSS