Ina Drew, JPMorgan investment chief, to retire

11:07 AM, May 14, 2012   |    comments
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NEW YORK (CNNMoney) -- JPMorgan Chase announced Monday that Ina Drew, the firm's chief investment officer, has left the bank after revelations of a $2 billion loss sustained over the past six weeks.

A statement issued by the company said Drew made the decision to retire, a move that was widely expected after the company disclosed the unit she managed had suffered a major loss.

The group had been making trades designed to hedge against risk, but had amassed a large position in credit-default swaps that began to sour.

Net losses, after factoring in other securities gains, are expected to exceed $800 million by the end of the second quarter. And losses could increase depending on market conditions and the bank's actions moving forward.

The unit had been expected to post a net gain of $200 million.

One of the highest paid women in the financial industry, Drew made $15.5 million in 2010. She has spent more than 30 years at JPMorgan (JPM, Fortune 500).

"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.

JPMorgan said that Matt Zames, who is currently the co-head of global fixed income in the investment bank and head of capital markets within the mortgage bank, would succeed Drew.

The bank, the nation's largest by assets, also announced that Mike Cavanagh, its former chief financial officer, will lead a firm-wide operating committee that will coordinate the bank's response to the loss.

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