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JPMorgan Global Chairman for Equity is Fined, Then Resigns
April 3, 2012
[ by Melanie Gretchen ]
One of the top bankers at JPMorgan Chase in London resigned on Tuesday, after being fined by British regulators for his role involving insider trading. The FSA charged him with disclosing inside information.
FSA Findings and Allegations. Ian Hannam, JPMorgan's global chairman of equity capital markets was ordered to pay £450,000 ($721,000) over 2 e-mails he sent in 2008 to a prospective client that allegedly contained information on Heritage Oil, a British company for which Hannam was lead advisor.
The Financial Services Authority claimed that, while he did not set out to commit market abuse, his failures were serious due to his experience and senior position at JPMorgan:
"Inside information is extremely valuable and must be handled with care to ensure that it is properly controlled and that appropriate safeguards are observed. This applies to all market participants but is particularly important for senior practitioners who will regularly interact with a wide circle of contacts." -- Tracey McDermott, acting director of enforcement and financial crime.
Mr. Hannam said he would appeal the decision, a process that could take more than a year. He is expected to stay at JPMorgan until he completes his client commitments. When asked why would leave during his appeal, Mr. Hannam said, ‘‘Appealing the case while still at the firm would be an unfair distraction to my clients and colleagues. I strongly believe, and have been advised by my legal counsel, that the FSA’s conclusions are wrong and I look forward to challenging them in an independent tribunal.’’
Bank's Background. Prior to JPMorgan, Hamman served as a soldier, known for his expertise in the mining industry, and is currently advising Xstrata, the mining company that received a takeover bid from Glencore International. Within the industry, he worked for Salomon Brothers in the capital markets business before joining the British bank Robert Fleming in 1992, which was acquired by Chase Manhattan in 2000. As of now, JPMorgan has not named a successor for Mr. Hamman.
For further details, go to [Dealbook, 4/3/12].

