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.