CME Group, which operates the New York Mercantile Exchange (NYMEX), has ordered JPMorgan to pay a fine of $30,000
Reuters reports that JPMorgan Chase & Co executed wash trades on 10 separate occasions in U.S. crude oil and gasoline futures in the first half of 2011, the operator of the NYMEX said in a disciplinary notice on Friday.
Banned under exchange rules, wash trades involve having the same dealer on opposite sides of one trade, simultaneously buying and selling the same commodity.
In the meantime, Bloomberg reports that JPMorgan has named Ashley Bacon deputy Chief Risk Officer as the firm overhauls risk management following its recent huge trading loss.
Bacon will retain his role as head of firmwide market risk, according to a memo last week to employees from Chief Risk Officer John Hogan. Bacon has been helping the New York-based company unwind the money-losing positions.
The Wall Street Journal has Hogan's memo:
'I am pleased to announce new and expanded roles for some leaders in Global Risk.
Ashley Bacon has been appointed Deputy Chief Risk Officer for the firm, reporting to me. Ashley will retain his role as Head of firmwide Market Risk. In this new role, he will partner with me to review and assess firmwide risk and risk governance. His responsibilities will include managing our risk appetite and risk limits, risk mitigation strategies, and working with me to lead and develop the firm’s Risk organization. He’ll also take the lead in directing our market risk coverage resources across the firm.
Ashley is one of the most experienced, thoughtful risk managers that we have. He joined the firm in 1993 and has held various roles in Markets and then Risk globally. He was an important player in the Investment Bank navigating through the Bear Stearns merger and the 2008 financial crisis, and I look forward to leveraging his expertise across the company.
Stephen Eichenberger has been appointed Wholesale Chief Credit Officer in addition to his role as Chief Credit Officer for the Investment Bank. He will report to me in his firmwide Chief Credit Officer capacity, and to Steinar Zinke, Chief Risk Officer for the Investment Bank, in his IB role. Stephen will coordinate and oversee Credit Risk-related activities across the lines of business, partnering with all of the Chief Risk Officers. He joined the firm in 1979 and has held various leadership roles across the Investment Bank.
Sam Ramsey will take on an expanded role as Chief Risk Officer for all Consumer businesses, continuing to report to me. Sam joined the company in 2011 and most recently was responsible for managing risk across Auto & Student Lending, Mortgage Banking and Consumer & Business Banking. Sam has spent more than 25 years in the financial services industry, including senior roles in Risk and Finance at Ally Financial and Bank of America.
Marge Hannum, previously Chief Risk Officer for Card, will be moving to a new role as head of Consumer Practices for Card, reporting to Gordon Smith. Thank you to Marge for all of the great work she has done over the past seven years in her CRO role in Card. Please see Gordon’s announcement on this great opportunity for her to continue to improve the customer experience at Chase.
Please join me in congratulating the team above on their new positions'.
Finally, The New York Post reports that JPMorgan has returned roughly $600m that was ensnared at the bank when MF Global Holdings Ltd. collapsed in October, people familiar with the matter said late Friday.
Most of the payments haven't been disclosed publicly, and a bankruptcy trustee representing customers of the failed securities firm might pursue JPMorgan for as much as several hundred million dollars in additional claims, according to a person familiar with the investigation.
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