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JPMorgan restructures unit that had $2 billion loss: report
The JP Morgan Chase & Co. headquarters is pictured in New York May 14, 2012.
Credit: Reuters/Eduardo Munoz
(Reuters) - JPMorgan Chase & Co (JPM.N) is spinning off the "special investments group" from its scandal-plagued chief investment office (CIO) in a bid to overhaul the division that cost the bank more than $2 billion in trading losses this month, the Financial Times reported.
The special investments group, which was not implicated in the CIO's trading losses, would be moved to J.P. Morgan Chase's corporate division and barred from seeking more investment opportunities, the newspaper said, citing people familiar with the matter.
The special unit's holdings included wireless internet provider LightSquared, which has filed for bankruptcy protection, it said.
Matt Zames, who replaced Ina Drew as head of the CIO, had also decided the division should focus on the basics of asset-liability management, the report said, adding that the kind of exotic trading activity that led to the $2-billion blow had been banned.
Norma Corio, a 30-year veteran of J.P. Morgan Chase, would continue to run the special investments group.
(Reporting By Michelle Conlin; Editing by Richard Pullin)
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“The special investments group, which was not implicated in the CIO’s trading losses”
“The special unit’s holdings included wireless internet provider LightSquared”
So the $2-6 billion that the CIO’s trading losses will be a drop in the bucket compared to the Special Units?
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