JAMIE DIMON, chief executive of JPMorgan Chase, shook up his top management team yesterday as the bank’s $2 billion trading loss claimed the scalp of Ina Drew, chief investment officer.

Mr Dimon turned to Matt Zames, the 41-year-old co-head of fixed income, to replace Ms Drew, whose division incurred the losses. She was the bank’s third highest paid executive last year with a $15 million package.

Her pay and that of other executives will go to a shareholder advisory vote today when Mr Dimon is due to address investors in Tampa, Florida.

It will be his first public appearance since last week’s revelation of large losses from trades on credit derivatives.

Mr Dimon’s reputation as the strongest chief executive on Wall Street has been dented by the admission of losses over trades that he previously dismissed as insignificant.

The credit derivatives index where JPMorgan is believed to have amassed a large position continued to move higher yesterday, an indication that the trades could still be producing losses for the bank. Mr Dimon said last week that the losses “could get worse”.

JPMorgan declined to comment on whether it would claw back the bonuses of Ms Drew and other traders who are set to leave the bank in the wake of the trading debacle.

People familiar with the matter said there would be accountability, but no final decisions on clawbacks had been reached.

The biggest US bank by assets also said yesterday that Mike Cavanagh, chief executive of the treasury and securities services group, will lead a team of executives overseeing its response to the losses.

The banks statement made no mention of two subordinates of Ms Drew (55), who were involved with the trades – London-based Achilles Macris (50) and Javier Martin-Artajo – who sources had said were expected to leave. Neither could be reached for comment.

The departure of Ms Drew after 30 years at JP Morgan comes after the unit she ran mismanaged a portfolio of derivatives tied to the creditworthiness of bonds, according to bank executives. The portfolio included layers of instruments used in hedging that became too complicated and too big to quickly unwind in the esoteric, thinly traded market.

One of Mr Dimon’s top lieutenants spoke out in his support yesterday. “He’s going to come out even stronger than he was going into it,” said Jes Staley, chief executive of the investment bank. “People often say that leadership is not that you never make a mistake, it’s how you handle it.”

The White House seized on the bank’s problems yesterday to renew calls for tighter regulation on big banks, and confirmed that the Securities and Exchange Commission is investigating the losses. – (Copyright The Financial Times Limited 2012/Reuters)