Investment Chief First Casualty in JPMorgan Chase Fallout

May 14, 2012 from Euronews

The chief investment officer of one of Wall Street's biggest banks, JP Morgan Chase, is to leave the company following trading losses that could reach three billion dollars. The firm said Ina Drew, who ran the London-based division responsible for the losses, is to retire after 30 years service. "JPMorgan has a great reputation", says Reuter columnist Agnes Crane, "but I think it's like you are never good enough to run a big bank and I think that's what is coming out from this, I think investors are going to start looking at other banks as well. I think this is going to reverberate beyond JPMorgan." The loss will undoubtedly dent the bank's profits although with revenues totalling 37 billion euros it should be able to withstand the blow. In a statement the bank said Matt Zames will take over Drew's position. The bank's boss, Jamie Dimon, has admitted he was wrong to have dismissed concerns about trading at the bank. There have also been unconfirmed reports that two other executives at the bank could resign.

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JPMorgan Chase

JPMorgan Chase & Co. is an American multinational banking and financial services holding company. It is the largest bank in the United States by assets, and as of 2012, it ranks as the second largest bank in the world by assets with total assets of $2.509 trillion. It is a maj... Explore this topic

Chief investment officer

The chief investment officer is a job title for the board level head of investments within an organization. The CIO's purpose is to understand, manage, and monitor their organization's portfolio of assets, devise strategies for growth, act as the liaison with investors, and re... Explore this topic

Jamie Dimon

Mr. Dimon became Chairman of the Board of JPMorganChase on December 31, 2006, and has been Chief Executive Officer and President of JPMorgan Chase since December 31, 2005.He had been President and Chief Operating Officer since JPMorgan Chase s merger with Bank One Corporation ... Explore this topic

London

London is the capital city of England and the United Kingdom, and the largest city, urban zone and metropolitan area in the United Kingdom, and the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history g... Explore this topic

Bank

A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and... Explore this topic

Wall Street

Wall Street is the financial district of New York City, named after and centered on the eight-block-long, 0.7 miles long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the... Explore this topic

Euronews

Euronews is a European, multilingual news television channel, headquartered in Lyon-Écully, France. Created in 1993, it claims to be covering world news from a Pan-European perspective. Explore this topic

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