The top executive in a JPMorgan Chase unit that lost more than $2 billion in botched trading is retiring. Chief Investment Officer Ina Drew had been with the firm, which is still reeling from the loss, for more than 30 years.
In Drew’s place, the bank on Monday 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 on Monday that Mike Cavanagh, CEO of the Treasury & Securities Services group, will lead a team of executives overseeing its response to the losses.
The bank’s statement made no mention of two of Drew’s subordinates who were involved with the trades — London-based Achilles Macris and Javier Martin-Artajo — who sources had said were expected to leave. Neither could be reached for comment.
JPMorgan shares have lost more than 12 per cent of their value on the New York Stock Exchange since the multi-billion dollar loss was disclosed Friday. They were trading at US$36.18 Monday afternoon, down just over 2 per cent from Friday’s close.