Matthew E. Zames, who will take over for Ina Drew as the chief investment officer of JPMorgan Chase in the wake of a $2 billion trading loss, has a long relationship with risk. Mr. Zames, who goes by Matt, is currently co-head of JPMorgan’s global fixed-income group and an executive in its mortgage division. He came to the bank in 2004 from Credit Suisse, where he was a trader in the interest rates group. His first job in finance, as a junior trader with the hedge fund Long-Term Capital Management, introduced him to the dangers of excessive risk-taking. Long-Term Capital Management, a hedge fund based in Greenwich, Conn., blew up after a series of risky arbitrage strategies led to billions of dollars in losses. The firm ultimately had to be bailed out in a $3.6 billion rescue coordinated by the Federal Reserve Bank of New York to avoid larger losses in the wider financial system. More in the New York Times here.
