After the $ 2 billion loss, JPMorgan arranges Trading Group powered

 

A few days after announcing losses of $ 2 billion at its main investments Office, JPMorgan Chase is clearing house. Matthew e. Zames, a JPMorgan Executive tapped Monday to replace outgoing Chief Investment Officer, Ina Drew, announced changes to the leadership of some of the top in the unit on Monday afternoon, according to an internal memo obtained the DealBook

Achilles Macris, Executive who led the group based in London that made ill-fated trade, will resign as head of the investment arm of Europe, according to the memo. Rob O'Rahilly will cause the Head Office of the company investments in Europe, Middle East and Africa, while Christopher Chan will lead the Office in Asia. Marie Nourie will take over the position of financial Director in the global unit, and Chetan Bhargiri will serve as the Group's chief risk officer of reform. ' I am proud of the efforts of the company over the last few days to fix our mistakes and are happy to join the dedicated employees in the Office of the head of our investment today, ' wrote Mr. Zames in a memo to employees. '' Together, we will have a new, sharp focus on our hedging strategies, risk management and execution. JPMorgan Chase will come out of this experience as a company is strong. '

Mr. Zames, 41, was an experienced traders with the risky situation looked at history. He served as a merchant in long term Capital Management, a hedge fund based in Greenwich, Conn., which explodes and must be saved on a bailout in 1998. He then moved to Credit Suisse before landing at JPMorgan, where he was part of the team that bought the failed Bear Stearns in 2008, in the depths of the financial crisis.

In an interview on Monday, Mr. Zames reflected on how the crisis before he ever encountered, including a front row seat for long term Capital Management explosion, had told his views on financial risk.

' I never forget the lessons of 1998, '' he said. ' It's not all that similar to the long term, frankly. ' Mr. Zames will be responsible for the Office of the Chief of investment because of efforts to stem losses from trading that failed. He said that although he was not involved in the strategy of Naas, he believed that it could be managed without posing a risk for JPMorgan's balance sheet.

' We will be prudent about any of our actions, '' he said. ' This trade, though large, is certainly not strong enough to cause problems in the context of our capital. '

The Head Office of JPMorgan investment could remain in the spotlight for weeks, as the company tried to relax trade and deal with queries from regulators. Mr. Zames, who was approached by the company's Chief Executive, Jamie Dimon, on a Friday night about taking a position on the beleaguered group, said, he didn't hesitate.

' What is interesting to me is helping JPMorgan and ensuring the company is moving in the right direction, '' he said.

Here is a copy of the memo:

    Message from Chief Investment Officer Matt Zames

I am proud of the efforts of the company over the last few days to fix our mistakes and are happy to join the dedicated employees in the Office of the head of our investment today.

A new leadership team has agreed to help me add to the already strong staff will continue to support the CIO. Rob will be leading the team of CIO O'Rahilly in EMEA, reporting to me. Christopher Chan will continue her role leading CIOS in Asia but he will be reporting to me. Marie Nourie will be CFO of the global group, reported together in Braunstein Doug and me.

As a result of these announcements, Achilles Macris will transition his CIO responsibilities

Global Income business remains in good hands under the leadership of Daniel. He has been a great partner. Fixed income Unit of JP Morgan is an integral part of the Investment Bank, and I thank all my colleagues in the business for his dedication and outstanding performance the last seven years. Our CIO staffs are very talented, and I am excited to work with my new team. Together, we will have a new, sharp focus on our hedging strategies, risk management and execution. JPMorgan Chase will come out of this experience as a company is strong.