Morning roundup: JPMorgan exec resigns; Greece mulls Euro exit

By Staff | May 14, 2012 | Last updated on May 14, 2012
2 min read

We’re committed to keeping you and your clients up-to-date with global industry news. Every morning, we offer articles from around the web. Here are some selections:

Top JPMorgan exec resigns JPMorgan’s chief investment officer, Ina Drew, resigned her post at the bank. Drew was one of the most powerful women on Wall Street and spent more than 30 years with Morgan.

As details are emerging on the complex hedging strategy that caused JP Morgan to hemorrhage $2 billion, the bank is probing roles trading desks at its various outlets played in causing the disaster.

Revelations about Morgan come as trading desks worldwide face tighter regulations, and many banks review their riskier operations. It’s even led conservative media outlets to rail for a return to 1930s-style restrictions on the activities of Wall Street banks.

Read: Three JPMorgan execs resign

Also, find out more about how regulators are focusing on the company’s loss, which was due to errors, sloppiness and bad judgment, according to CEO Jamie Dimon.

Euro woes grow Once touted as a “United States of Europe,” and feared for the economic leverage it could wield against other powers, the EU now looks as if it will fragment—one broke country at a time.

ECB board members now openly say they fear Greece will depart the economic union, and pundits are suggesting the country’s eventual default will tear at its abilities to continue to function as democracy.

Voters elsewhere in the Eurozone are also raising questions. Germany’s electorate handed Angela Merkel a defeat on the austerity issue yesterday.

Spain, meanwhile, appears ready to hang tough for the time being, saying it’s prepared to pump funds into a failing bank to stabilize its financial core; in keeping with zone requirements.

Death of bonds?

The latest bank reports indicate bond issuances worldwide are at their lowest point since 2005, and that just $523 billion has been raised in fixed income markets so far this year.

The scorecard of bond auctions corroborates the low volume of issues on tap.

The shift suggests moneymaking opportunities in bonds are ebbing and that it’s time to move clients into stocks. That topic appears on the cover of June’s Advisor’s Edge magazine. Keep an eye out for it. staff


The staff of have been covering news for financial advisors since 1998.