JP Morgan has swiftly severed ties with a top bond trader who allegedly circumvented its compliance procedures earlier this year as the bank moves to reinforce its commitment to risk management.
The dispute centered around Lombara's "failure to adhere to certain control processes," prompting JP Morgan to ask for his resignation, said the US bank. A Finra spokesman said the regulator will review the firing as a matter of practice as it does with all dismissals for cause.
According to Financial Times, Lombara boosted the size of his US Treasury Strip trading book, by splitting new interest rate strips from existing Treasury reserves.
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