Tuesday, May 15, 2012

Reversal of Fortune, Part II

There once was a trading technician
Who failed in his primary mission;
The bank, for this drawback,
Attempted to claw back
The bulk of his trading commission.

In reading of the fallout from the $2 billion derivative trading loss at J. P. Morgan & Co., and the bank's closing ranks around embattled CEO Jamie Dimon, I was struck by the mention of possible clawbacks in the compensation of those, such as the "London Whale" Bruno Michel Iksil and his erstwhile boss Ina Drew, who had direct responsibility for the loss. This got me to wondering: in our world of Too Big To Fail, moral hazard and golden parachutes, is the clawback of ill-gotten bonuses something that actually happens? I put the question to you, oh ye denizens of Wall Street!
Posted by Dr. Goose
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