J.P. Morgan Firing The London Whale

J.P. Morgan Chase & Co. (NYSE: JPM) has already sent its long-time Chief Investment Officer named Ina Drew packing after the $2 billion loss that surfaced last week.  The damage to J.P. Morgan’s reputation has been extensive, but the bank is still expected to make something to the tune of $20 billion this year.  Now it is the trader, the notorious London Whale named Bruno Iksil, who is “leaving” the bank.

DealBook of the New York Times has reported the news and it cited current and former colleagues as saying the timing of this departure is not known.

• UPDATE 1:52 PM EST: CNBC reported that J.P. Morgan’s comment is that Iksil is still employed at the firm.

Today’s news should really not be a shock. Jamie Dimon survived efforts to split his office of the Chairman and CEO, but the damage to Jamie Dimon is that now politicians and the critics sitting back afar on Main Street think much less of him.

Other departures are cited in the Times around this issue and chances are high that either more firings are coming or are already in the works.

If J.P. Morgan can have stupid oversight procedures and poor risk management, then what does it say for the other participants?

J.P. Morgan shares are down 0.3% at $36.10 against a 52-week range of $27.85 to $46.49.

JON C. OGG