JPMorgan Chase executive retires following trading loss

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As expected, JPMorgan Chase announced today that Ina Drew, Chief Investment Officer, one of the most powerful women on Wall Street will retire from the company, following a reported $2 billion trading loss. Lower ranking personnel are also expected to leave the company.

CEO Jamie Dimon emphasized that the company is in good shape and able to absorb the loss at a company that racks up billions of dollars a year in earnings. Still, the loss was a black mark on Dimon’s record, after he led  the company through the global debt crisis and becoming an outspoken critic of  Wall Street reform efforts.

JPMorgan Chase has thousands of employees in Delaware and recently announced plans to add more than 1,000 workers.

Drew had been with the company for more than three decades. most recently as Chief Investment Offier.

Matt Zames, currently co-head of Global Fixed Income in the Investment Bank and head of Capital Markets within the Mortgage Bank, will succeed Drew  as  Chief Investment Officer and continue in his mortgage-related responsibilities. He  will also join the firm-wide Operating Committee.

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Daniel Pinto, currently co-head of Global Fixed Income with Matt, will become sole head of the group. Daniel will also remain CEO of  Europe, Middle East and Africa region, based in London.

Mike Cavanagh, CEO of our Treasury & Securities Services (TSS) group, will lead a team of senior executives from across our company to oversee and coordinate our firmwide response to the recent losses in the Chief Investment Office. 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 some time.

“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,  CEO.

Dimon concluded, “It’s important to remember that our company is very strong and well capitalized, with leading franchises across our businesses. We maintain our fortress balance sheet and capital strength to withstand setbacks like this, and we will learn from our mistakes and remain diligently focused on our clients, who count on us every day.”

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