There has already been quite a bit of risk and compliance hiring at JPMorgan. In the wake of last year’s massive trading loss, insiders say the bank moved quickly to strengthen its risk and compliance teams and to strengthen controls across the bank. This may not be the end of the affair, however.
The US Office of the Comptroller of the Currency has just ordered JPMorgan to strengthen its controls still further. After conducting various, ‘targeted exams’, it claims to have identified various areas of inadequacy in the chief investment office (CIO) where the loss took place. Specifically, it said JPMorgan had: “inadequate oversight and governance to protect the bank from material risk, inadequate risk management processes and procedures, inadequate control over trade valuation, inadequate development and implementation of models used by the bank”.
JPMorgan says it’s already addressed many of the issues raised by the Comptroller, but an optimist might think that the bank will need to hire some more control staff in the near future. A quick look at the bank’s own careers site suggests this may be the case. JPMorgan is currently advertising 10 jobs in the CIO, including an information risk manager, an EMEA compliance officer, a UK-based auditor and a VP in reporting and analysis.
RBS’s Libor fine may be $800m and John Hourican may be asked to leave next week. (Bloomberg)
More people are being sacked in the City than at any time in the past five years as the FSA steps up enforcement activity. (Financial News)
Profits down 5% at Michael Page. (Evening Standard)
Citigroup’s named Linos Lekkas head of investment banking for CEEMEA. (Bloomberg)
Citi is dispensing with its head of emerging markets, who’s worked there for 12 years. (Bloomberg)
Secretary steals money from banker, again. (Bloomberg)
RBS instant messges: ‘“Where would you like it (Libor that is)?” (Bloomberg)
UK government furious that Goldman said to be delaying bonuses to pay tax. (Financial Times)
They’re so greedy they know no shame,” said Lord Oakeshott about Goldman’s alleged plans to defer bonuses. (Guardian)
Kareem Serageldin, the former head of Credit Suisse’s structuring products group, faces extradition. (Financial Times)
Barclays to cut bonuses by 20%. (Reuters)
Sitting is the smoking of our generation. (HBR)
Worst ever incident involving an intern. (Daily Mail)