JPMorgan's New CIO Tied to Madoff, Federal Reserve, LTCM
NEW YORK (TheStreet) -- Matt Zames, the executive tapped to take over management of JPMorgan Chase(JPM) 's chief investment office (CIO), has a controversial resume that appears tailor-made to add to indignation over Wall Street's outsized influence and penchant for risk-taking.
Zames allegedly told a colleague about suspicions regarding Bernie Madoff some 18 months before his Ponzi scheme was revealed to the public.
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He also worked at Long Term Capital Management, the now-infamous hedge fund comprised of top academics and Nobel Prize-winning economists whose blow-up rattled global markets in the late 1990s.
Zames also heads the Treasury Borrowing Advisory Committee, a Wall Street committee that advises the U.S. Treasury on managing its debt.
JPMorgan's CIO has been thrust into the spotlight following last week's disclosure that it is sitting on $2 billion in losses, less than a month after JPMorgan Chairman and CEO Jamie Dimon dismissed press reports voicing concerns about the CIO as "a complete tempest in a teapot." Dimon now says he was "dead wrong."
Zames, a co-head of fixed income at JPMorgan, will replace Ina Drew, who resigned in the wake of the losses.
A call to Zames was referred to JPMorgan's press office. A call to the bank's chief spokesman was not returned.
-- Written by Dan Freed in New York.
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