Lou Lebedin, the head of JPMorgan's prime brokerage unit, is out, according to a source close to the company. The prime brokerage unit executes and clears trades for hedge fund clients. JPMorgan is one of the giants in the space.
JPMorgan declined to comment. Lou Lebedin did not return a call for further comment.
Teresa Heitsenrether will take over Lebedin's duties over the summer. Heitsenrether is currently the head of JPMorgan's European prime brokerage operations. She plans to return to New York this summer, said the source.
As of now, Lebedin plans to remain at JPMorgan and will be assigned to another unit by late summer, said the source.
The personnel change came as a big surprise to many of Lebedin's counterparts at other banks and hedge funds that clear through JPMorgan Chase. Still, none of these individuals see a connection between Lebedin's ouster and the large losses at JPMorgan. The source close to the company said the changes were "genuinely unrelated."
The unit has little to do with the JPMorgan's chief investment office, which manages the firm's risk. Several hedge fund managers said it's likely that JPMorgan is using the growing loss to shake up other units within the bank.
Lebedin was a veteran of Bear Stearn's prime brokerage unit. He joined JPMorgan when the bank bought Bear Stearns with help from the Federal Reserve back in the spring of 2008.
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