Published On: Mon, May 14th, 2012

JP Morgan Executive Announces Retirement after $2 Billion Trading Loss

One of the highest ranking women in Wall Street, Ina Drew, Chief Investment Officer, has become the first casualty of JP Morgan Chase’s $2-billion trading gaffe.

The bank announced Monday, in a press release that Drew, 55, would step down after more than 30 years with the company.

JP Morgan Chase, the leading financial services firm with global scale and reach announced last week that it lost $2 billion as the result of some complicated hedge fund trading.

Drew will be replaced by Matt Zames, currently co-head of Global Fixed Income in the Investment Bank and head of Capital Markets within the Mortgage Bank.

“Ina Drew has been a great partner over her many years with our firm. Despite our recent losses in the CIO, Ina’s vast contributions to our company should not be overshadowed by these events,” said Jamie Dimon, Chairman and CEO.

Dimon added, “Matt Zames is a world-class risk manager and executive — highly regarded for his judgment and integrity.”

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.3 trillion and operations worldwide.

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  1. kafantaris says:

    The derivative hedging game played by JPMorgan Chase is no different than that played by AIG in 2008.
    Yet, Jamie Dimon tells us that Chase had merely “made a terrible, egregious mistake.”
    He might as well have said that Chase was wrong in raising in a game of poker, when it would have been more prudent and folded. But why was Chase busy gambling in the first place — right after our economic meltdown, and while fighting government regulation?
    One answer is because Chase could bear the gambling losses.
    That’s right. With $2 trillion at hand, Chase can yawn when $3 billion goes down the tube.
    Nonetheless, Dimon tells us that he sees no problem with the government dismantling big failing banks. This is nice to know because the government should start dismantling big banks before they fail — and before they have another chance to take us down with them.
    The important lesson then from this Chase episode is not that stringent regulations are needed to reign in on derivatives, but that banks big enough to take huge hits standing up are ripe enough for us to chop down to size.

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