JPMorgan Chase & Co. Chief Financial Officer DouglasBraunstein is considering leaving his position and may seek a rolein the firm's investment bank, where he previously led deal making,according to a person with direct knowledge of the matter.

Braunstein, who was promoted to CFO in June 2010, is likely toremain in that role for at least several months, said the person,who requested anonymity because a decision on the move isn't final.The finance chief had reported to Chief Executive Officer JamieDimon until July, when Matt Zames, 41, became his boss and co-chiefoperating officer amid management changes in the wake of a $5.8billion trading loss.

Braunstein, 51, didn't respond to a phone call seeking comment.The Wall Street Journal reported late yesterday that he isexpected to leave his post.

The trading loss, tied to wrong-way bets on derivatives, isbeing reviewed by agencies including the Federal Bureau ofInvestigation, Securities and Exchange Commission, the U.K.Financial Services Authority and the U.S. Senate PermanentSubcommittee on Investigations. An internal probe showed traders inLondon priced their books “aggressively” and may have tried to hidethe full extent of their losses, the company has said.

The FBI is focusing its inquiry on four former London-basedexecutives in the bank's chief investment office, where the lossoccurred, and the bureau could make arrests in the next severalmonths, the New YorkTimes reported late yesterday, citing officials briefed onthe case.

London Whale

The newspaper said the FBI is scrutinizing former JPMorgantraders including Bruno Iksil, nicknamed the London Whale becausehis wagers were big enough to move the market, as well as his boss,Javier Martin-Artajo, and former Europe CIO head AchillesMacris.

A lawyer for Macris, 51, declined to comment and an attorney forIksil didn't respond to requests for comment, according to the NewYork Times. Greg Campbell, a lawyer for Martin-Artajo, said hisclient “is confident” that he will be cleared of wrongdoing after a“fair reconstruction of these complex events is completed,” thenewspaper reported.

Joe Evangelisti, a JPMorgan spokesman, declined to comment.

A series of personnel changes stemmed from the botched bets,starting with the resignation in May of Chief Investment OfficerIna Drew, 56, less than a week after Dimon, 56, disclosed thetrading loss. Her exit was followed by that of Iksil, Martin-Artajoand Macris.

Two senior managers last week also disclosed that they intend toleave the company. Irene Tse, 43, who ran the CIO for North Americaunder Drew, told employees that she's resigning and people familiarwith the matter have said she plans to start a hedge fund. FormerChief Risk Officer Barry Zubrow, 59, who runs JPMorgan's lobbyingoperation, announced Oct. 5 that he will retire at year-end.

JPMorgan is scheduled to report third-quarter results tomorrowbefore U.S. markets open. The lender may say net income climbed 14percent to $4.87 billion, according to the average estimate of 13analysts surveyed by Bloomberg.

Bloomberg News

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