JPMorgan Chase & Co's international headquarters are seen on Park Avenue in New York July 13, 2012.© Andrew Burton / Reuters/Reuters
BlueMountain, one of the the hedge funds that brought down the JPMorgan Chase & Co. trader dubbed the "London whale" last year, has hired Jes Staley, a senior lieutenant to the U.S. bank's chief executive Jamie Dimon.
Mr. Staley was head of JPMorgan's investment bank before moving to the more hands-off role of chairman last year after accepting he was not going to succeed Mr. Dimon.
Andrew Feldstein, BlueMountain's chief executive and chief investment officer, said: "Jes is one of the most experienced and successful leaders in the industry and has played a key role at one of the world's most successful financial institutions. Not only has he had a front row seat for the evolution of the financial industry, but he's also one of the most ethical people we've worked with."
BlueMountain participated in the same corporate credit markets as JPMorgan's traders who eventually racked up more than $6-billion (U.S.) of losses on credit derivatives bets. The hedge fund was one of several to trade against the bank's positions, making substantial profits, and eventually helped it liquidate the positions.
"I'm very excited to be joining BlueMountain at a time when sea changes in the financial industry combined with the firm's unique strengths open up enormous possibilities to deliver value to clients," said Mr. Staley. "I want to thank all my colleagues at JP Morgan, my home for the last 34 years, and I look forward to working with them in the future."