Wow, screwing up at JPMorgan looks pretty good compared to working a normal job. The "trader at heart" who was supposed to be managing risk for JPMorgan (Ina Drew) received a very comfortable exit package. Yes, she was making millions each year and had been there for decades for let's not forget that Drew, like everyone else in that industry, never had to pay back a dime from business that was wiped off of the books during the crash.
JPMorgan may have escaped the worst of the banking crisis earlier, but they still had their fair share of bad business. Also, after a taxpayer bailout to save Wall Street's lifestyle, it's unthinkable to fire someone and see them still walk away with an exit plan that is worth millions. If Wall Street wants capitalism, for god's sake have it but this is not capitalism. The Telegraph:
One of the best paid women on Wall Street, Ms Drew last year received a remuneration package worth $15.5m.It was reported later in the week that "The Whale" was on his way out but it doesn't look like he or the others in that team are gone yet. European and UK workers do have more legal protections and with the amount of money involved all around, negotiations are likely to be longer.
Corporate filings show that following her resignation she is entitled to $400,000 in severance as well as a share award that was worth $16m yesterday. On top of this, she has unexercised options that were valued at the end of last year at $3.44m, a series of retirement benefits worth a further $2.63m, and a $9.87m deferred compensation pot built up over several years.
Ms Drew, who spent over 30 years at the bank, is not expected to be the only executive to depart in the wake of a loss that has damaged JP Morgan's reputation for risk management. Achilles Macris, who ran the London division of JP Morgan's chief investment office (CIO), and Javier-Martin-Artajo, a trader who worked in the unit, are also reported to be leaving.
As mentioned earlier, workers can be fired in Europe or the UK but the process always takes longer. One would think that such gross negligence would be easier but the bank is in CYA mode. It is almost certain that the failed risk managers at JPMorgan will all come out of this process making much more money that anyone in any other industry.
Once again, the game is rigged and the bankers walk away laughing with pockets full of money regardless of performance. Nice work, when you can get it.