JPMorgan executive to step down after shock $2bn loss

The chief investment officer at the US’s biggest bank is to step down after it unveiled shock $2bn (€1.55bn) losses last week.

JPMorgan Chase & Co yesterday said that chief investment officer Ina Drew will retire after the firm suffered a $2bn trading loss, marking the downfall of one of the highest-ranking women on Wall Street.

Ms Drew, 55, will be succeeded by Matt Zames, 41, the co-head of global fixed income in the bank.

The entire London staff of the bank’s chief investment office, where the loss occurred, is at risk of dismissal, said a source.

Chief executive Jamie Dimon announced the loss last Thursday, calling his firm’s handling of trading in synthetic credit positions as “flawed, complex, poorly reviewed, poorly executed and poorly monitored.”

Mr Dimon had encouraged Ms Drew’s unit to boost earnings by buying higher-yielding assets, including structured credit, equities and derivatives, in an expansion of risk-taking, ex-employees said in April. That shifted the office from a role mitigating lending risks to becoming a profit centre, former staff said.

The US Securities and Exchange Commission, the Federal Reserve and the Commodity Futures Trading Commission are investigating.

Until recently, Ms Drew did well with her investments, with the corporate division under which she reports earning a peak of $3.7bn in 2009. The bank rewarded her with a $15m pay package for 2010 and $14m for her performance last year, according to regulatory filings.

“Despite our recent losses, Ina’s vast contributions to our company should not be overshadowed by these events,” Mr Dimon said.


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