JPMorgan Chase & Co. said Chief Investment Officer Ina Drewwill retire after the firm suffered a $2 billion trading loss,marking the downfall of one of the highest-ranking women on WallStreet.

Matt Zames, the 41-year-old head of global fixed income in theinvestment bank, will succeed Drew as CIO, New York-based JPMorgansaid today in a statement. The entire London staff of the bank'schief investment office, where the loss occurred, is at risk ofdismissal, a person familiar with the situation said.

Chief Executive Officer Jamie Dimon, 56, announced the loss May10, assailing his firm's handling of trading in synthetic creditsecurities as “flawed, complex, poorly reviewed, poorly executedand poorly monitored.” JPMorgan is examining whether anyone in theunit, which employs a few dozen people in London, sought to hiderisks, though there isn't yet evidence that's the case, the personsaid.

“It's good to see there's accountability as well asresponsibility here,” said David Hendler, an analyst atCreditSights Inc. “This person was in charge of this strategy andit appears was not aware, or giving the right signals to topmanagement, of the risks that were building.”

Taking Risks

Drew, 55, was one of two women on the operating committee atJPMorgan, the biggest and most profitable U.S. bank. Her officeoversees about $360 billion, the difference between money fromdeposits and what the bank lends. Dimon had encouraged her unit toboost earnings by buying higher-yielding assets, includingstructured credit, equities and derivatives, in an expansion ofrisk-taking led by Achilles Macris, ex-employees said in April.

JPMorgan hired Zames from Credit Suisse First Boston in 2004 torun trading in Treasuries, agencies, and interest-rate swaps andoptions. His responsibilities increased to include currencies,securitized products and municipal bonds. In 2009, Zames and DanielPinto were picked to run fixed income after Jes Staley took overthe firm's investment bank from William Winters and Steven Black.Pinto will become sole head of the business, according to thestatement.

Under Zames and Pinto, JPMorgan has become the top bank globallyin fixed-income trading. The firm's 17 percent market share in 2011was a record for Wall Street, Staley told shareholders earlier thisyear.

Zames previously worked at hedge fund Long-Term CapitalManagement LP, which collapsed in 1998.

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