The 6am Cut London | FT Alphaville

The 6am Cut London

Three senior JP Morgan staff are expected to leave the company this week over the $2bn trading loss, which is continuing to grow, reports the WSJ, citing people familiar with the situation. The losses grew by $150m on Friday, the report says. Expected to leave as soon as Monday are Ina Drew, who heads the chief investment office; Achilles Macris,  who led the London-based trading team; and trader Javier Martin-Artajo.  JP Morgan is carrying out an investigation into whether staff hid the risks of the trade, reports the FT, and JP Morgan’s entire CIO unit in London may be disbanded, says Bloomberg, citing a person familiar with the situation.

Greece appeared to be heading for fresh national elections after last-ditch coalition talks chaired by the country’s president ended in mutual mud-slinging by the conservative, socialist and leftwing leaders, reports the FT.  Meanwhile tax collection slowed markedly during the election campaign, putting budget deficit targets at risk, according to a finance ministry official.

The ECB is talking publicly about a Greek exit from the eurozone, says the FT.  Jens Weidmann, Bundesbank president, who also sits on the ECB council, warned in a German media interview at the weekend: “The consequences for Greece [of a eurozone exit] would be more serious than for the rest of the eurozone.” Greek withdrawal “is not necessarily fatal, but it is not attractive,” said Patrick Honohan, an ECB governing board member, in Tallinn on May 12, reports Bloomberg.

Yahoo chief executive Scott Thompson has quit – 10 days after it was revealed that he did not have one of the academic qualifications claimed in his personal résumé, says the FT. The company’s statement made no mention of a reason for the departure or whether Thompson had quit or been fired. Ross Levinsohn, head of Yahoo’s media businesses, will be interim CEO.

ResCap is expected to file for bankruptcy late Sunday or early Monday morning, the WSJ says, citing a person familiar with the matter. Residential Capital, Ally Financial’s mortgage subsidiary, has been a drag on the rest of Ally’s operations. Its board was scheduled to meet late Sunday to vote on the move.

China, Japan and South Korea have agreed to start free-trade talks this year, reports Bloomberg.

Louis Dreyfus Commodities plans to tap the capital markets for the first time in its 160-year history, as it embarks on a $7bn spending programme that will include a string of acquisitions, reports the FT. However the food commodities trader’s top shareholder says there are no plans for a flotation.


– If Greece goes… what next? (Financial Times)

– Wolfgang Munchau: Default now… or later? (Financial Times)

– Steve Wozniak really, really hearts the Facebook IPO. (Bloomberg)

– Is the commodities super-cycle over? (Wall Street Journal)