by Lisa Swan on May 11, 2012
Think you had a rough week? JP Morgan Chase CEO Jamie Dimon’s week was even worse. Chase is one of our Wall Street Winners and Losers for the Week of May 7-11.
Losers– Jamie Dimon and JP Morgan Chase: Jamie Dimon is known as the “King of Wall Street,” but it looked like the king got crowned pretty good this week, with the revelation that thanks to a trader in the Chief Investment Office known as the “London whale,” the bank recently suffered over $2 billion in trading losses. The Wall Street Journal calls it “a rare black eye” for Dimon and Chase. Ironically, Dimon was recently the ringleader of lobbying efforts to defang the Volcker Rule, a proposed federal regulation that could help prevent trading shenanigans like this.
Loser – Robert Stiller: The Green Mountain Coffee Roasters chairman not only got stripped of his title this week, but he was required to sell millions in company stock, in order to repay loans to Deutsch Bank. He also had to sell Krispy Kreme stock. Turns out that Stiller, a yoga and meditation advocate and a hippie back in the day, borrowed many millions against his stock holdings to spend money on a yacht and Tom Brady’s luxury Manhattan apartment. What a long, strange trip it’s been.
Losers – Scott Thompson, Patti Hart, and Yahoo!: Thompson, the new CEO of Yahoo!, caused lots of stomach-churning at the company when Third Point, an investor in the firm, revealed that Thompson’s bio listed him as having a computer science degree he never earned. Then Hart, a Yahoo! director who was in charge of the search committee that hired Thompson , said she would not run for re-election to the board. Now Thompson reportedly is claiming that he never submitted a resume to the executive search firm who reviewed his credentials. Really?
Winner – Facebook: Even though Mark Zuckerberg may look like an overgrown college kid in his omnipresent hoodie, he is still getting feted from coast to coast for his company’s upcoming IPO. Also sitting pretty are those who already own shares of Facebook, like FriendFeed and Friendster. How, well, friendly!
Winner – Rovio: The creator of the enormously popular Angry Birds smartphone games made a reported $106 million in 2011, much of it at 99 cents a time. The company has a new game coming soon, known as Amazing Alex, and there is talk that Rovio may go public at some point. No word on whether the pigs will get any stock. Oink!
Winner – The Volcker rule & its proponents: Just as Matt Taibbi proclaimed ominously that Dodd-Frank was groaning in agony because of Wall Street titans like Jamie Dimon twisting the bill’s neck, they got an unexpected boon: the bank’s shocker of a $2bn trading loss, announced Thursday. It’s a major blow to the CEO, who has been vocally against Dodd-Frank and the Volcker rule. Though Dimon argued that the trades did not actually violate any terms of the Volcker rule, critics responded that the loss is simply evidence of how weak and toothless the new regulatory measures are.
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Lisa Swan is a Feature Writer for the Compliance Exchange and the Wall Street Job Report. She is also a columnist for The Faster Times and a blogger for Subway Squawkers. Her work has also appeared in the New York Daily News, Yahoo Sports, Huffington Post and the books Graphical Player 2011 and Graphical Player 2010.