logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

JPMorgan Throwing in Blythe Masters in Commodity Desk Sale

  +Follow September 17, 2013 12:52PM
Share:
Tickers Mentioned:

Litigation-racked investment bank JPMorgan & Chase Co. (JPM) put their multi-billion commodity desk up for sale back in July, looking for someone to take a wildly profitable but litigation-prone department off their hands. On Sept 17 the bank revealed they’re throwing in something else that has both made them a lot of money and caused them a lot of legal woes: wunderkind executive Blythe Masters, an executive renowned for her leadership, cunning, and proclivity for attracting the attention of government regulators.

Masters started at JP Morgan as an 18-year-old intern at their infamous London office, and quickly rose to head up their entire commodities department. The now 44-year-old Masters has been a divisive force in the company with her brash trades, making and losing fortunes. But there is no question she has a knack for making money, and her inclusion in the sale of the commodities desk has enticed investors.

Over 50 potential buyers have expressed interest in the unit, which JPMorgan is shedding as they face litigation from nearly every side of their business, Masters included.

In an investigation conducted by the Federal Energy Regulatory Commission, Masters was accused of lying under oath about her knowledge of an energy price-manipulation scheme that defrauded California and Michigan ratepayers of $83 million. JPMorgan eventually paid out a $410 million settlement in connection with the manipulation.

Masters has also been implicated in price fixing schemes involving silver, and was closely tied to the development and sale of the credit derivatives that would eventually plunge the entire globe into financial turmoil. Masters has become something of a pariah in the public eye concerning her involment in the development of credit-default swaps, with the Gurdian going as far as to label her  the "woman who built the financial weapon of mass destruction."

Despite ongoing investigations into her propriety, Masters is unquestionably adept, and has made a fortune for JPMorgan. She is held in incredibly high esteem by CEO Jamie Dimon, who promoted her to head up the commodities desk in 2006. Paul Fribourg, the chairman and CEO of major JPMorgan client Continental Grain is similarly impressed, and had previously said “Tell (Masters) if she’s looking for a job, she’d be first on our list.”

While the exact price of Masters’ services is up for debate, the commodities desk itself is quantifiably quite valuable, racking up $2.4 billion in revenue last year.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Signup for our daily newsletter and get our best articles emailed right to you!

				
				
  +Follow September 17, 2013 12:52PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.