JPMorgan Trade Blunder Sees First Management Casualty (Update 1)
Updated with report of further management shakeups.
NEW YORK (TheStreet) --JPMorgan Chase (JPM) has made further leadership changes at the bank's Chief Investment Office on Monday as it moves to clean up the house following its disclosure of a $2 billion trading fiasco.
Achilles Macris, the executive who led the London-based group that made the trades, will step down as chief investment officer of the European arm, according to an internal employee memo cited by the New York Times.
Earlier Monday, the bank accepted the resignation of Chief Investment Officer Ina Drew and named Matt Zames, earlier co-head of global fixed income in the investment bank and head of capital markets within the mortgage bank, as her replacement.
Drew had served at the bank for more than 30 years, sticking with the firm through a series of mergers and acquisitions. "Ina Drew has been a great partner over her many years with our firm. Despite our recent losses in the CIO, Ina's vast contributions to our company should not be overshadowed by these events," CEO Jamie Dimon said in a statement. Zames has an interesting resume,having worked at infamous hedge fund Long Term Capital Management which blew up in the late 90's. ""I've never forgotten the lessons of 1998," Zames told NYT in an interview Monday. "This is not all that similar to Long-Term, frankly." "I am proud of the firm's efforts over the past several days to address our mistakes and pleased to join the dedicated employees in our Chief Investment Office today," Zames said in the memo to employees, posted on the Times' website."Together, we will have a sharp, renewed focus on our hedging strategies, risk management and execution. JPMorgan Chase will come out of this experience as a stronger firm." Mike Cavanagh, CEO of JPMorgan's treasury & securities services group will help steer the firm's response to the recent losses at the Chief Investment Office, the bank said. -- Written by Shanthi Bharatwaj from New YorkSelect the service that is right for you!
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