Irvin Goldman, who oversaw risks in the JPMorgan Chase & Co. unit that suffered more than $2 billion in trading losses, was fired by another Wall Street firm in 2007 for money-losing bets that prompted a regulatory sanction at the firm, Cantor Fitzgerald LP, three people with direct knowledge of the matter said.
JPMorgan appointed Goldman in February as the top risk official in its chief investment office while the unit was managing trades that later spiraled into what Chief Executive Officer Jamie Dimon called “egregious,” self-inflicted mistakes. The bank knew when it picked Goldman that his earlier work at Cantor led regulators to penalize that company, according to a person briefed on the situation.
JPMorgan is investigating whether anyone at the firm sought to hide trading risks, people familiar with the matter have said. It hasn’t found that Goldman did anything improper, one person said.
On April 13, Dimon called news about the London trades a “complete tempest in a teapot.” As the positions fueled losses in the following days, Hogan removed Goldman from much of his duties, one of the people said.