Ina Drew, JPMorgan Chase’s CIO, retires in wake of $2 billion trading loss
JPMorgan Chase announced on Monday that Chief Investment Officer Ina Drew has left the firm after revelations of a $2 billion trading loss sustained over the past six weeks. In a statement issued by the company, they said Drew made the decision to retire; a move that was widely expected when the company disclosed the units she managed had suffered a major loss.
Drew’s group had been making trades designed to hedge against risk, but had collected a large position in credit-default swaps that began to sour. After other security gains are factored, net losses are expected to surpass $800 million by the end of the second quarter. The big bank’s losses could also increase depending on market conditions and the bank’s actions moving forward. Drew, who has spent more than 30 years at JPMorgan, was one of the highest paid women in the financial industry. In 2010, she made $15.5 million. In a statement, CEO Jamie Dimon said, “Despite our recent losses in the CIO, Ina’s vast contributions to our company should not be overshadowed by these events.” Drew is expected to receive $14.7 million in severance in the form of stock, $2.6 million in pension benefits, and almost $10 million in deferred compensation, says Theo Francis, a senior reporter at footnoted.com, a website that specialize in SEC filings.