| NEW YORK
NEW YORK Jan 16 Peter Weiland, the most senior
risk officer in JPMorgan Chase's Chief Investment Office before
the "London Whale" scandal broke last April, quietly resigned in
October, according to a report released by the bank on
His resignation has not been previously reported in the
Weiland, who was the head of market risk for the CIO until
mid-January 2012, was the most senior risk officer in the bank's
moneymaking office when the derivatives trades that eventually
cost it $6.2 billion were being made.
In mid-January 2012, JPMorgan appointed Irvin Goldman chief
risk officer of the CIO, placing him in a position above
Weiland. Goldman held that position until May.
The report JPMorgan released in conjunction with its
fourth-quarter earnings cited failures in risk management inside
the CIO and by JPMorgan's senior management.
"CIO risk management made a number of key missteps," the
report said, adding that "the firm did not ensure that the
controls and oversight of CIO evolved commensurately with the
increased complexity and risks of CIO's activities."
The CIO lost $6.2 billion when positions in a small, opaque
derivatives market quickly lost value under a squeeze by several
hedge funds. From the time the squeeze was first reported in
April to a series of midsummer statements by JPMorgan and CEO
Jamie Dimon, a number of managers inside the bank lost their
jobs or changed positions.
The bank conducted an internal investigation into the
incident, and regulators in the U.S. and the U.K. opened their
own inquiries. The bank revealed in July it had found evidence
that some CIO employees in London may have tried to hide losses
in the CIO's books by trying to mismark the values of some
derivatives trades. An investigation by the U.S. Securities and
Exchange Commission and the Federal Bureau of investigation is
By at least August, Weiland had hired a lawyer to represent
him in the investigations into the trading losses. He continued
to work in risk management in the CIO until October, when he
Weiland's lawyer did not immediately respond to a request
for a comment.