As JPMorgan steadies itself after the massive "London whale" loss, former CIO Ina Drew continues to feel the consequences, offering to repay her last two years of salary in what CEO Jamie Dimon called a "maximum clawback." Dimon dropped that detail in an earnings call Friday morning, during which he also reported that "the loss from the bank's chief investment office's errant trades has totaled $5.8 billion so far this year," CNN's Maureen Farrell writes.
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The bank won't recover all that amount "clawing back" pay from its executives, but it's going to do so anyway, and with a vengeance. In addition to Drew, who retired days after news of the loss broke, "all of the managers in London responsible for the bad trades are now gone from firm -- none are receiving severance or 2012 bonuses," reports The Huffington Post's Mark Gongloff, who's live-blogging the earnings call. "The bank is clawing back the maximum permitted from each of these people -- two years of total compensation for each of them."
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Dimon didn't give dollar amounts or identify the executives, except for Drew, but you can rest assured they're big. As The Wall Street Journal's Monica Langley and Dan Fitzpatrick reported on Thursday: "The bank plans to claw back certain stock awards that haven't yet vested, which could total millions of dollars for some of the individuals. Ms. Drew earned $15.5 million in 2011 compensation, including $7.5 million in stock awards, and was due as much as $14.7 million in termination payments, according to the bank's April 4 proxy filing." Ouch.
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