JPMorgan Chase & Co. promoted Matt Zames to co-chief operating officer alongside Frank Bisignano as the biggest U.S. bank shakes up its management following a $5.8 billion trading loss.

James "Jes" Staley, who was chief executive officer of JPMorgan's investment bank, was moved out of daily operations and assigned the new position of chairman of the corporate and investment bank, the New York-based firm said today in a statement. Staley, 55, will transition "his current responsibilities to new leaders in the business," JPMorgan said in the statement.

The shuffle moves Staley out of a major operating role while expanding the role of Zames, 41, whom Chief Executive Officer Jamie Dimon, 56, named in May to clean up the chief investment office following the loss. Zames will still be in charge of the CIO, the firm said. Bisignano, 52, who was appointed to run mortgage banking last year, will transition that business to Gordon Smith, who will run the consumer business with Todd Maclin.