UPDATE 1-JPMorgan makes another change in chief risk office
NEW YORK, June 13 (Reuters) - John Hogan, who became chief risk officer of JPMorgan Chase & Co as the company was just beginning to lose billions of dollars on its London Whale derivatives trades last year, may leave the company, CEO Jamie Dimon said on Thursday.
Hogan will first return to work on Monday from a leave he had taken in January and will initially hold the new title of chairman of risk, Dimon said in a memo to employees which was seen by Reuters.
Hogan will be replaced as chief risk officer by Ashley Bacon, who had been interim head of risk during Hogan's leave, the memo said.
In January 2012, Hogan became chief risk officer for the company. Over the next four months the derivatives trade losses grew until the company disclosed in May that it had lost at least $2 billion and was working to get out of the positions.
The disclosures set off intense investigations by government and company officials of JPMorgan's risk controls and whether some banks are too big to manage safely.
Hogan worked on overhauling the risk systems under the scrutiny of regulators. In November, Hogan's father died after a long illness, according to a person close to the bank.
Hogan said in January that he had discussed the possibility of a leave with Dimon and other executives before deciding taking the action.
Dimon said in the memo on Thursday that Hogan will work with Bacon for "several" months.
"We then hope he will stay at the firm in another senior role, but he may choose to do something different outside of our company," Dimon said. "John is a highly talented executive who did a superb job as head of Risk when we needed him most."
JPMorgan has shed, or reassigned, a number of top executives since the London Whale debacle, which ultimately cost more than $6.2 billion. Since last May, Dimon has replaced his chief financial officer and investment banking chief, as well as the head of the Chief Investment Office, where the London Whale losses occurred.