(NEW YORK) — JPMorgan Chase has initiated compensation clawbacks related to its $5.8 billion trading loss, after announcing that some employees may have intentionally tried to hide the bad trades.
Ina Drew, who formerly led JPMorgan Chase’s chief investment office that was responsible for the bank’s trading loss, has agreed to forfeit two years worth of compensation, though her severance amount has not been reported yet.
JPMorgan Chase accepted that offer, the maximum clawback allowable under the firm’s employment policy, said company spokesman Joe Evangelisti, according to Bloomberg News.
Other managers in the London-based chief investment office left the company without severance and will have to forfeit up to two years of compensation.
Earlier on Friday, JPMorgan Chase reported second-quarter profit of $5 billion and that the losses on the CIO’s synthetic credit portfolio was $4.4 billion for the period. The trading loss cut profits by nine percent for the quarter.
The bank’s shares rose six percent to $36 Friday after officials said the trading loss would be no more than $7.5 billion.
Copyright 2012 ABC News Radio
Heather Long, CNN
Doug Criss, CNN
Ralph Ellis, CNN