JPMorgan Chase is spinning out the "special investments group" from its troubled chief investment office (CIO) as executives clean up the division that caused $2bn trading losses, according to people familiar with the matter.
The unit will be moved to the bank's corporate division and prevented from seeking fresh investment opportunities, bankers were told on Wednesday, writes the Financial Times. 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 Zames has decided his division should be refocused on basic asset-liability management. More exotic activity, including the private equity...
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