This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Reincarnation on Wall Street: Screw-Ups Never Die

NEW YORK ( TheStreet) -- Nothing succeeds like failure on Wall Street. If you don't believe me, just ask Irvin Goldman.

What? You've never heard of Irvin Goldman? Clearly you haven't been following the $3 billion-and-counting JPMorgan Chase trading loss, which has become a kind of giant whoopee cushion beneath the well-compensated tush of the bank's voluble CEO, Jamie Dimon. Goldman, you see, was the top risk official of the bank's chief investment office when it incurred said loss.

As described in the the Wall Street Journal and Bloomberg on Monday, Goldman is something of a loser. But that never stopped him. Au contraire, I think it may have actually helped his career.

To anyone unfamiliar with the culture of Wall Street, the story of Irv Goldman may seem strange. It makes you wonder: How could this guy have been appointed to manage the risk of a pet store, much less the complex and potentially systemically dissettling derivatives portfolios of a major bank?

Goldman, you see, had done such a lousy job at his previous employer, Cantor Fitzgerald, that he was not only fired for losing scads of money but his firm was actually sanctioned by regulators for not doing a good job of supervising him.

But why should that get in the way of a cozy family tradition? Goldman, who had previously been hired by JPMorgan as a trader, was named in February to fill the post vacated the month before by his brother-in-law, Barry Zubrow, who moved to another high-level position in the company. Well, you know what they say: Time heals all wounds. A full two years had passed since Cantor was sanctioned because Goldman screwed the pooch.

The Cantor case came to a head in 2010, when NYSE Arca fined Cantor $250,000 after finding it failed to supervise Goldman, who engaged in money-losing trades "buying and selling the same stocks in personal accounts that he traded in a proprietary account at the New York-based brokerage," Bloomberg reported. His stock investments, it was found, presented a "conflict of interest that could have affected his investment decisions." The particulars were spelled out in a settlement agreement, naming Goldman only by his title, in which Cantor Fitzgerald agreed to the fine without admitting or denying the accusations.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
JPM $59.55 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs