JPMorgan Chase is spinning out the “special investments
group” from its troubled chief investment office as executives clean up the
division that caused $2 billion trading losses, say people familiar with the
matter according to the Financial Times report.
The unit, whose investments include LightSquared, the
wireless internet provider, will be moved to the bank’s corporate division and
prevented from seeking fresh investment opportunities, bankers were told on
Wednesday. Matt Zames, the new head of
the CIO, announced the changes to staff. He was appointed by Jamie Dimon, chief
executive, to replace Ina Drew, who ran the CIO until its losses roiled the
bank this month.
The special investments group was not implicated in the
CIO’s losses. But Mr Zames has decided his division should be refocused on
basic asset-liability management….
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