It's official. The heads at J.P. Morgan have begun rolling over the $2 billion trading loss the firm announced last week.
In a press release, the bank said that Ina Drew, the chief investment officer who oversaw the trading strategy, will retire. Matt Zames, the current co-head of global fixed income in the investment bank and head of capital markets in the mortgage bank, will take over her position. He will continue in his mortgage role, but will cede his role as co-head of global fixed income. Daniel Pinto, his co-head of that group, will function as sole head.
Drew, 55, had worked at J.P. Morgan and its predecessor firm for 30 years. She took over the chief investment office in February 2005 and earned $15.5 million in compensation last year.
The firm assigned Mike Cavanaugh, chief executive of the Treasury & Securities Services Group, (which coordinates cash management between corporations and J.P. Morgan), to lead the response to the trading debacle.
In a statement, Chief Executive Jamie Dimon said that "despite our recent losses in the CIO, Ina's vast contributions to our company should not be overshadowed by these events."
The statement didn't mention Achilles Macris, who was in charge of operation in London that conducted the trades or Javier Martin-Artajo, a trader in that office. Both men are expected to leave the firm, The Wall Street Journal reported.
Last week, Dimon promised "corrective action" would be taken to address the missteps.
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