NEW YORK (CNNMoney) – JPMorgan Chase announced Monday that Ina Drew, the firm’s chief investment officer, has left the bank after revelations of a $2 billion loss sustained over the past six weeks.
A statement issued by the company said Drew made the decision to retire, a move that was widely expected after the company disclosed the unit she managed had suffered a major loss.
Sheila Bair, senior adviser at the Pew Charitable Trusts and former chair of the FDIC has called for closing some of those loopholes that allowed this type of risky investments to happen. She also says banks like JPMorgan Chase are too large to manage and need smaller and simpler institutions.
“This is still a very serious issue,” Bair says. “I think it does underscore that even with very good management these institutions are just too big to manage, and especially when dealing with very complex derivatives instruments trying to hedge risk in large securities trading books, even the best of managers can stumble. And so it does I think require, suggests smaller, simpler institutions, ones that have more focused management on particular bus iness lines.”