| | | quote | Originally posted by yellowstone:
So, in your job, if you managed a unit that was, in your boss's opinion, badly executing a flawed strategy, resulting in a multi-billion dollar loss, causing your boss to have to apologize in public and to shareholders and wiping billions off the value of your company, you would get a multi-million dollar severance payment when you then had to leave the company?
SNAFU, IMO! |
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I was referring to Jamie Dimon, not the unit manager, but to say this particular trade was flawed is a bit presumptious IMO. JPM pretty much invented CDS and derivitaves in the 90s, and has done very very well with them. It is a hedge of course and as such-- is risky. This practice is done all the time-what brought about the loss was the size and length of time involved and the fact that other traders figured out the strategy and made trades of their own to profit from the JPM hedge. Anytime someone posts a loss, someone else posts a gain. No one, including the media is beating anyone up about those gains that resulted from Iksils' cds activity.
As far as the unit manager, as so many liberals have said about their union contracts, .."a contracted agreement is a contract and should be honored no matter what".
The other side of this coin is, that had the trade made $$, one of two things would have happened.
The public and media would have never even noticed and little cared,
Or, the public would have been up in arms that some "elite uppercrust executive" had made an ungodly amount of money for an evil financial institution.
Personally, I don't believe in severance packages of any kind, regardless of performance, stellar or cellar--but that's just me.
[This message has been edited by maryjane (edited 05-15-2012).]
