JPMorgan Execs Behind $2 Billion Trading Loss Expected to Resign
UPDATE: Ina Drew, the chief investment officer at JPMorgan Chase, “has made the decision to retire from the firm,” the company announced on Monday.
In a statement, JPMorgan said Drew will be succeeded by Matt Zanes, the current co-head of Global Fixed Income in the Investment Bank and head of Capital Markets within the Mortgage Bank.
(NEW YORK) — In the wake of JPMorgan Chase’s $2.3 billion in-house trading operating loss, at least three people tied to the risky trades are expected to resign.
Ina Drew, chief investment officer at JPMorgan, will be one of the executives leaving, according to the Wall Street Journal. Drew, 55, is one of the top women on Wall Street and for the past seven years had been the trading division head at the bank.
Drew has offered to resign since the disclosure of the firm’s loss, which could top $4 billion.
On Thursday, JPMorgan Chase’s CEO Jamie Dimon admitted the trading loss was an “egregious” failure in a unit managing risks, but he added that just because the bank did something “stupid” doesn’t mean other firms are having such trouble.
“There were many errors, sloppiness and bad judgment,” Dimon said. “These were grievous mistakes, they were self-inflicted.”
The loss reportedly came within the last six weeks and resulted from losing bets on “synthetic credit securities” — the same kind of instruments that nearly led to a collapse of the financial system in 2008, prompting a nearly $1 trillion government bailout.
Congress and the FDIC have been grappling with how to prevent “too big to fail” institutions from taking big risks knowing that the U.S. Treasury is there to back them up.
According to the Wall Street Journal, the Securities and Exchange Commission has started an early stage review into the loss.
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