J.P. Morgan Chase (NYSE:JPM) is reportedly expected to claw back compensation for some officials responsible for the banking giant’s embarrassing and expensive London whale trading blunder.
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According to The Wall Street Journal, the clawback plans could be disclosed as early as Friday when the largest U.S. bank by assets is poised to unveil second-quarter earnings and issue an update on the trading losses.
J.P. Morgan is expected to claw back compensation from Ina Drew, who was in charge of the Chief Investment Office that was at the center of the trading blunder and has since resigned, the paper reported. Other officials, including Bruno Iksil, the trader dubbed the “London whale,” are also expected to be hit by the clawbacks.
Meanwhile, J.P. Morgan is expected to say the failed hedging strategy has cost the company just north of $5 billion in the second quarter, the Journal reported. Future losses are expected to stay below $1 billion and could eventually turn into profits depending on the markets, the paper said.
Shares of the financial giant ticked 0.5% higher to $34.42 ahead of the opening bell on Wednesday. They have gained 3% so far this year, but remain off 13% over the past 12 months.