Hey, no one likes the new era of overweening regulation on Wall Street, but when Jamie Dimon hears about some meshuggenehs over on the treasuries desk working outside the handbook, heads are gonna roll...
JPMorgan Chase sacked the head of its government debt trading desk and another employee after they allegedly circumvented the bank’s compliance procedures following a disagreement in valuing certain trades, said people familiar with the matter.
Andrew Lombara, then head of US Treasury trading at the bank, and Chi Lee, a junior Treasury trader, both left the bank in early January but the reasons for their departure were not disclosed publicly.
If Jamie has to deal with a fervently anti-bank campaign cycle, rough economic waters and basic everyday bullsh!t, he's not going to put up with a couple of strips traders shushing the JPM compliance department and doing whatever they damn well please.
Don't make him get Queens on your asses...
The traders and the bank’s valuation committee disagreed over the amount of reserves taken for certain Treasury trades known as strips, the Financial Times has learnt.
The JPMorgan traders wanted to increase the size of the reserve and went around the valuation committee to do so, said people familiar with the matter. JPMorgan believed this subsequent move violated internal bank procedures and fired the traders, they added.
Now Jamie's got FINRA poking around and a bunch of paperwork to worry about.
So, if you're a millennial JPMorgan trader thinking to yourself that Jamie is overreacting to some guys just having a little fun with liquidity, we recommend that you Google "Joe Jett" before voicing your opinion within earshot of the executive dining room.