JPMorgan executives expected to leave over loss [View all]

[mbperrin]

http://www.reuters.com/article/2012/05/13/us-jpmorgan-departures-idUSBRE84C0EP20120513


(Reuters) - JPMorgan Chase & Co is expected this week to accept the resignation of Chief Investment Officer Ina Drew after the bank lost $2 billion or more with a failed hedging strategy using derivatives, sources close to the matter said on Sunday.

Two of Drew's subordinates who were involved with the trades, Achilles Macris and Javier Martin-Artajo, are expected to be asked to leave, according to the people familiar with the matter.

Drew had repeatedly offered to resign after the bank discovered that its portfolio of derivatives tied to bonds was rapidly losing money and had grown too big to be quickly unwind, according to one of the sources. But the resignation was not immediately accepted because of her past performance at the bank.

Until the $2 billion loss was disclosed on Thursday night, Drew was considered in the industry to be one of the best managers of balance sheet risks.



This whole derivatives scam should be illegal...