Google translation
Bruno Michel Iksil had it all: intelligence, natural authority, the boss of mathematics and fortune. Out of Central, one of the most prestigious French grandes écoles the delight trading rooms, the son of an engineer could not hide a feeling of superiority, which is a good point to the City.
But the former Natixis, claiming that his main quality was humility, also had a serious flaw like many French traders at the height of their career in the Anglo-Saxon finance. The professional London boasted of being able to "walk on water" as Jesus.
RAISE THE "CDS" TO CREATE THE SHORTAGE
Change of scenery for the star trader Chief Investment Office, the direction of investments of U.S. investment bank JPMorgan Chase. Today, he is held responsible for the loss of at least $ 2 billion (1.5 billion euros) following misfires paris highly sophisticated financial products called "credit default swaps" (CDS), which provide the State bankruptcies or companies. Nicknamed "the whale London" in view of its position among the highest memory operator, the French had decided to raise the CDS to create scarcity. Fatal greed ...
"In these huge organizations JPMorgan style, there will always be an individual or a small group to play poker. It is up to leaders to put in place adequate controls," said Chris Roebuck, professor of economics at Cass Business School. And that's where the shoe pinches. The small unit which included Iksil was the personal fief of CEO Jamie Dimon. His superior at 125 London Wall, Achilles Macris had only to the big boss and the right arm of the latter, Ina Drew, who oversaw far the Chief Investment Office.
Moreover, the existence of this mysterious pharmacy Dimon allowed to bypass its direct employees, whose authoritarian man distrusted. In addition, he had a vested interest in promoting cell autonomous Iksil that professionals were paid less in bonuses.
In addition, in American banks, in contrast to what happens in Europe, the deposits are higher than loans. This is why cash flocked to the Chief Investment Office. Simple investor responsible for covering the risks, the Centrale became a speculator on everything and anything.
BOMB
In 2010 and 2011, the pole was Iksil Bruno realized windfall that fueled the year-end bonuses of management in New York. To begin with, Ms. Drew, who won $ 15.5 million (12 million) in commissions and bonuses last year ...
Jamie Dimon had ignored warnings about the potential danger of the accumulation of risk in London. The few Cassandras who had dared to challenge this subject had been marginalized or limogées. Small staff away from headquarters on Park Avenue, lack of proper controls, authoritarianism at the top, opaque transaction documentation ... Without knowing it, JPMorgan was sitting on a time bomb.
And the situation was reversed in early 2012 when hedge funds have been betting against JPMorgan to cover the case where the accumulated positions are settled in London. Even if the French trader had acted with the approval of the General Staff of JPMorgan, the Financial Services Authority, the UK regulator, has launched an investigation into whether this champion of financial capitalism has perverted the wheels.
Marc Roche - London Correspondent
