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JPMorgan replaces head of unit faulted for $2 billion loss

May 14, 2012|By Andrew Tangel
  • The bank's stock has suffered since the disclosure of a $2 billion trading loss.
The bank's stock has suffered since the disclosure of a $2 billion… (Mark Lennihan / Associated…)

Ina Drew, the JPMorgan Chase & Co. executive who headed the bank's unit responsible for a stunning $2 billion trading loss, will retire, the bank announced.

Chief Investment Officer Drew will step down after more than 30 years with the bank, though the bank's announcement did not specify when she would depart.

A source familiar with the situation told The Times on Sunday that Drew had offered repeatedly to resign and that her resignation would likely be accepted this week.

“Ina Drew has been a great partner over her many years with our firm," Jamie Dimon, JPMorgan's chairman and chief executive officer, said in a statement. "Despite our recent losses in the CIO [Chief Investment Office], Ina’s vast contributions to our company should not be overshadowed by these events."

Despite the announcement, JPMorgan's stock continued to take a beating on Wall Street. In early trading the bank's stock had lost 84 cents, or 2%, falling to $36.12 a share.

The stock had plunged 9% Friday following disclosure of the $2 billion loss the previous day.

Replacing Drew will be Matt Zames, who is currently co-head of global fixed income in JPMorgan's investment banking unit head of capital markets in the mortgage banking unit, the bank said.

In the statement, Dimon said JPMorgan remains "very strong and well-capitalized."

"We maintain our fortress balance sheet and capital strength to withstand setbacks like this, and we will learn from our mistakes and remain diligently focused on our clients, who count on us every day," Dimon said.

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