Bank chief to leave after $2bn loss

JPMorgan ChaseAmerica's biggest bank is expected to accept the resignation of one of the highest-ranking women on Wall Street after it lost two billion dollars (£1.2 billion) in a trading blunder, a person familiar with the matter said.

JPMorgan Chase will accept the resignation of Ina Drew, its chief investment officer, and at least two other executives will be held accountable for the mistake, the source said.
The casualties come as the bank seeks to minimise the damage caused by the trading loss, disclosed on Thursday by chief executive Jamie Dimon.

Investors shaved almost 10% off JPMorgan's stock price on Friday, and Mr Dimon has said the mistake will complicate the efforts of banks to fight certain regulatory changes three years after the financial crisis.

Ms Drew, 55, is a top lieutenant to Mr Dimon. She was paid 15.5 million dollars (£9.6 million) last year and almost 16 million dollars in 2010, making her one of the highest-paid officials at JPMorgan, according to a regulatory filing.

The Wall Street Journal reported that Ms Drew and two other JPMorgan executives were expected to resign soon.

The Journal also said Bruno Iksil, the JPMorgan trader identified as the "London whale" because of the giant bets he placed, was also likely to leave, but it was not clear when that would happen.

The surprise loss has been a black eye for the bank and for Mr Dimon, who is known in the industry both as a master of risk management and as an outspoken opponent of some proposed regulation since the crisis.

JPMorgan's disclosure has led politicians and critics of the banking industry to call for tougher regulation of Wall Street. Many post-crisis rules governing risk-taking by banks are still being written.

Mr Dimon told a TV interview that he was "dead wrong" when he dismissed concerns about the bank's trading last month. "We made a terrible, egregious mistake," he said on NBC's Meet The Press. "There's almost no excuse for it."

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