Guess Which Screwup Hurts Most: Barclay’s $450 Million vs. JPMorgan $9 Billion
On June 27, Barclays (BCS) agreed to a $450 million settlement for its role in the London Interbank Offered Rate, or Libor, scandal. On Tuesday, chief executive Robert Diamond resigned in the fallout. Here’s the market’s reaction:
But on May 10, JPMorgan Chase (JPM) announced a trading loss of $2 billion, which has since grown to $9 billion. JPMorgan’s chief executive, Jamie Dimon, remains on the job. And the market says:
So there’s the answer: a $450 million fine (plus one CEO) is worth more than a $9 billion trading loss. Sometimes the market's math does not add up.
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