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Trading loss impact: JPMorgan CIO Drew retires

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Press Trust of India New York
Last Updated : Jan 21 2013 | 4:10 AM IST

The staggering loss, unveiled last Thursday by JPMorgan in a hurriedly organised analysts call, came due to a trading by risk management group led by Drew.

"Ina Drew, Chief Investment Officer, has made the decision to retire from the firm. Ina has served the firm for more than 30 years, most recently as head of our Chief Investment Office," JPMorgan Chase said in a statement.

Apart from being a big blow for the banking giant that tackled the 2008 financial meltdown well, the whopping derivative-trading loss has also ignited fresh concerns on the risk taking ways of the Wall Street.

"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," JPMorgan Chairman and CEO Jamie Dimon said.

Drew would bee replaced by Matt Zames, currently co-head of Global Fixed Income in the Investment Bank and head of Capital Markets within the Mortgage Bank. In addition to continuing with his mortgage-related activities, Matt would join firm-wide operating committee.

Daniel Pinto, currently co-head of Global Fixed Income with Matt, would become sole head of the group.

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Further, a team of senior executives led by Mike Cavanagh -- CEO of Treasury & Securities Services (TSS) group -- would oversee and co-ordinate the response to the recent losses.

"As part of this effort, Mike will ensure that best practices and lessons learned are carried across the firm. Mike will continue to oversee TSS but will be largely dedicated to this project for the near future," the statement said.

Dimon pointed that the company maintains a "fortress" balance sheet and capital strength to withstand setbacks.

A leading global financial services player, JPMorgan has assets worth USD 2.3 trillion.

  

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First Published: May 14 2012 | 9:25 PM IST

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