JP Morgan traders were sacked over allegations they ignored compliance procedures
Investment bank JP Morgan Chase sacked two traders earlier this year because they allegedly circumvented the company's compliance procedures.
Andrew Lombara, who was head of US Treasury trading, and Chi Lee, a junior Treasury trader, left JP Morgan in January. At the time, no reason was given for their departures.
However, the Financial Times has reported that the two traders left after a disagreement over the amount of reserves taken for certain Treasury trades. Lombara and Lee wanted to increase the size of the reserve, and went around the bank's valuation committee in order to do so.
JP Morgan viewed this as a violation of its internal procedures, and so fired the two traders.
In filings submitted to the Financial Industry Regulatory Authority about each man, JPMorgan wrote: “The firm determined that the employee did not adhere to certain control processes.”
JP Morgan declined to comment.