JP Morgan's Chief Investment Officer Ina Drew is retiring in the wake of a 2-billion-dollar trading loss.

Meanwhile, experts say executive resignations do not change risky practices at US banks.

World News has the details.

JP Morgan said on Monday that Chief Investment Officer Ina Drew was retiring from the bank after the bank suffered a 2-billion-dollar trading loss.
 
As the chief investment officer of the New York-based firm, Drew was responsible for the risk-management group that sustained the trading losses.
 
She had worked 30 years for JP Morgan.

According to JP Morgan filings, she earned 31.4 million in the past two years combined, making her rank among the highest paid officials in JP Morgan.

In Drew's place, the biggest US bank by assets on Monday named Matt Zames, a trader by background who is well versed in risky financial bets.

The Wall Street Journal also reported that Bruno Iksil, a JPMorgan trader identified as the "London whale," was also likely to leave because of the bets he placed that led to the massive losses.

The bank announced the stunning trading loss last Thursday.

New York University Professor and former Wall Street executive Ann Lee believes that the recent incident at the largest US bank is just the tip of the iceberg.

SOUNDBITE ANN LEE, FORMER WALL STREET EXECUTIVE:
"I don't think resignations change the risk character of these banks at all. They're just convenient scapegoats for the business of these banks to just shove everything under the rug and again continue business as usual. It's good for the public to make people feel that some people got punished but it doesn't change the profile of these banks and I would imagine that risky trades will continue in the future."

On Monday, the White House called for stricter Wall Street oversight and the need for tougher regulations.

Lee told CNC that the risky practice of hedging, meaning a bank making trading bets with its own money, is rather common.

SOUNDBITE ANN LEE, FORMER WALL STREET EXECUTIVE:
"I don't think it's just particularly JP Morgan. It think all the large banks will have these kind of issues that can crop up and that is the reason why when there was the fight for financial reform that many advocates wanted to break the banks into smaller banks because when they are so large it is virtually impossible to stop something like this from happening."

Moody's said on Monday that the 2 billion losses are a negative development for the bank's shareholders.

The losses are expected to impact JP Morgan Chase's 2 quarter earnings report.

US President Barack Obama said during an interview with ABC that JP Morgan's stunning trading losses demonstrates the need for the Wall Street rules that Congress passed two years ago.
Many of the rules are still being written and have not taken effect.