How can you spot a very highly paid trader? Flashy cars are often an indicator. So too may be very large photographs of a missile on the wall of your apartment.
Documents released by the US Senate ahead of today’s panel investigating what went wrong with the so-called London Whale, revealed that Achilles Macris, a portfolio manager in the chief investment office at JPMorgan earned far more than his boss Ina Drew. Macris earned $31.8m in the two years before the whale trades blew up, reported Bloomberg. Drew earned $29m. Bruno Iksil, the man most often associated with the failed trades, earned there merest $14m.
Coincidentally, Macris was the only one of the three to adorn his apartment in London with an unusually large photograph of a missile in flight. Bloomberg reported last year that a visitor to Macris’ apartment observed that it contained six trading screens and a six-foot-by-six-foot missile-shot. That was 2004. Macris was hired by JPMorgan in 2006 and only came into his own in 2010 when Drew went on sick leave. It’s not clear whether the missile endured.
Macris was also said by former colleagues to be a deep thinker with “great knowledge” of art, wine, politics and history.
The Senate argued that pay for Macris and others in the CIO fuelled risky behaviour. Ina Drew paid back her $29m when she left. It is unclear whether Macris retained his $31m or not.
Ina Drew says it wasn’t her fault. (Financial Times)
JPMorgan accused of lying over the whale loss. (Financial Times)
JPMorgan finally let go of Julien Grout, the other trader implicated in the Whale trade, in December 2012. (FSA)
Who is Julien Grout? (eFinancialCareers.fr)
The panicked messages of Bruno Iksil. (Business Insider)
The reason Bruno Iksil was panicking. (Instagram)
Live blogging the Senate panel on JPMorgan. (Wall Street Journal)
Brady Dougan said some Credit Suisse bankers might want to move to Zurich or New York to avoid the EU bonus cap, but it’s no big deal. (Evening Standard)
Santander proves that retail bankers get golden hellos too. (Reuters)
Erin Callan now says she has no regrets: her life has actually been amazing. (Business Insider)
The Bank of Italy has told Italian banks which did not make a profit in 2012 or have low core capital that they should not pay dividends or bonuses to senior managers this year. (Financial Times)
The ECB needs to hire 800 supervision staff. It currently has 50. “The recruitment of skilled and experienced staff, particularly banking supervisors, will be a priority.” (Wall Street Journal)
Richard Buxton, head of UK equities at Schroders, will leave the company in mid-June together with his colleague Errol Francis, co-manager of the £648 million Schroder UK Equity Fund. (The Times)
Under Bob Diamond, televisions at Barclays’ HQ were tuned to Bloomberg. Under Antony Jenkins, they’re tuned to Sky News and the BBC. (The Times)
Hedge fund pay rose 15% last year. Employees of the best performing hedge funds took home $200k bonuses. (FinAlternatives)
It’s a year since Greg Smith resigned from Goldman. Today, his book is ranked No. 19,990 on Amazon. (NYMag)