May 27, 2012 / 10:53 PM / in 8 years

JPMorgan replaces prime brokerage head: source

LONDON (Reuters) - JPMorgan Chase & Co (JPM.N) has named Teresa Heitsenrether as the new head of its global prime brokerage business, a source familiar with the situation said.

Heitsenrether, who had been setting up the business from London in the European, Middle East and Africa region, replaces Lou Lebedin.

The firm, which strengthened its competitive position through the 2008 financial crisis, disclosed earlier this month that it had suffered trading losses of more than $2 billion, giving ammunition to proponents of tighter rules on Wall Street.

But the change at the unit — which is part of the investment bank and provides loans and other services to hedge fund clients — was unrelated to the loss, or any other incident, and had long been in the works, said the source, speaking on condition of anonymity.

JPMorgan declined to comment.

The bank became a major prime broker in 2008 when it bought the failed Bear Stearns, bringing in Lebedin.

Heitsenrether has long worked in JPMorgan’s fixed-income prime brokerage business, the source said, and would return to New York to take up her new position.

She had moved to London to set up the prime brokerage business in the region, and it had always been the plan that she would take the global role from Lebedin, though this had now been “accelerated”, the source said.

JPMorgan was looking for new opportunities for Lebedin within the organization, the source said, but it had not decided yet what his role would be.

Editing by Alwyn Scott and Dale Hudson

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