NY1.com

  51º

You are not signed in  |  Sign in here  |  Help

You're viewing a lite version of NY1.com

Time Warner Cable customers: Sign in with your TWC ID for video access.

Get my TWC ID. | Get TWC service. | Read the FAQ.

05/14/2012 11:19 AM

Chase CIO Steps Down Amid $2 Billion Trade Loss

By: NY1 News

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

JP Morgan Chase's chief investment officer is retiring following the bank's $2 billion trading loss.

The company says Ina Drew has decided to retire after 30 years with the firm.

Matt Zames will take over as the bank's CIO.

The bank has also announced the creation of a team of senior executives to oversee
and coordinate the firm's response to the recent losses.

Speaking on NBC's "Meet the Press" this week, Chase CEO Jamie Dimon admitted the company ignored red flags and took far too much risk on an unproven derivative strategy.

He said the loss came during the last six weeks as the bank was trying to hedge against financial risk, not making a profit.

Dimon says despite the loss, the bank is still in good financial shape.

The loss has led lawmakers and critics of the banking industry to call for stricter regulation of Wall Street.