Ina Drew, JPMorgan Chase CIO, Retires Amid Huge Trading Loss (1801 hits)
Reuters | Posted: 05/14/2012 9:42 am Updated: 05/14/2012 12:27 pm
* JPM says Ina Drew to retire after 30 years
* Departure follows losses on derivatives trades
* Matt Zames to take Drew's position
* Mike Cavanagh to oversee response to losses
* CEO Dimon says loss could reach $3 bln or more (Adds background on Zames, early share trading)
By Matt Scuffham and David Henry
LONDON/NEW YORK, May 14 (Reuters) - JPMorgan Chase & Co Chief Investment Officer Ina Drew retired on Monday, the first casualty after the bank suffered trading losses that could reach $3 billion or more and that have tarnished the reputation of high-profile Chief Executive Jamie Dimon.
In Drew's place, the bank named Matt Zames, a trader by background who is well versed in risky financial bets. He was at one time employed at Long-Term Capital Management, whose 1998 collapse nearly caused a global crisis.
The biggest U.S. bank by assets said Drew, its New York-based CIO and one of its highest-paid executives, will retire. Mike Cavanagh, CEO of the Treasury & Securities Services (TSS) group, will lead a team of executives overseeing its response to the recent losses.
The bank's statement made no mention of two of Drew's subordinates who were involved with the costly trades -- London-based Achilles Macris and Javier Martin-Artajo -- who sources had said were expected to leave. Neither could be reached for comment.
