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JPMorgan exec quits after trading loss

Monday, May 14, 2012 - 01:12

May 14 - JPMorgan's Chief Investment Officer Ina Drew is retiring after 30 years, the first casualty after the bank suffered trading losses that could reach more than $3 billion and which have sparked an investigation by U.S. securities regulators. Joanna Partridge reports.

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She's the first JPMorgan employee to go after the bank revealed it had made a trading loss of at least $2 billion. As expected, the U.S. lender sacrificed its investment chief Ina Drew. She's retiring after 30 years. Drew was based in New York, and was one of the bank's highest-paid executives. Drew ran the Chief Investment Office - which allegedly mismanaged a portfolio of derivatives. The portfolio's hedging instruments became too complicated to work and too big to unwind quickly. JP Morgan got through the financial crisis without reporting a loss and has been seen a strong risk manager. But these trading losses could end up reaching $3 billion or more. The episode has also hit the reputation of the bank and its CEO Jamie Dimon. JPMorgan lost $15 billion in stock market value the day after the loss was announced and its stock fell again on Monday. The bank's statement made no mention of two of Drew's team who were involved with the costly derivatives trades and were also expected to leave. Joanna Partridge, Reuters

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JPMorgan exec quits after trading loss

Monday, May 14, 2012 - 01:12