JPMorgan Chase & Co. (NYSE: JPM) today announced next steps in unifying
some of its Chase-branded businesses to better serve consumer customers
and more formally aligning two of its J.P. Morgan-branded wholesale
franchises for the benefit of corporate and investor clients around the
world.
With each of JPMorgan Chase’s major businesses now a market leader, the
company will integrate them even more formally. Managing businesses that
share similar customers allows the firm to utilize its collective
strengths and expertise to do more for our clients and to grow our
business.
As part of this integrated approach, the company is announcing some
organizational changes and new and increased responsibilities for a
number of key executives.
Consumer & Community Banking
With the success of the “One Chase” effort to merge our Consumer
businesses, the company is now accelerating that integration. Todd
Maclin and Gordon Smith will become co-CEOs of Consumer & Community
Banking, which includes Consumer & Business Banking, Card & Auto, and
over time, Mortgage Banking.
Frank Bisignano, who was tapped in early 2011 to lead the highly
successful transformation of Mortgage Banking, in addition to his role
as Chief Administrative Officer of the firm, will transition the
Mortgage business to Gordon Smith in early 2013 and become co-Chief
Operating Officer for the entire company.
Todd Maclin and Gordon Smith will run the Chase consumer businesses
together and continue to integrate the franchise for the benefit of the
Chase’s 50 million customers. Todd will move on to a Chairman role of
this business at the end of 2013 and will then transition it to Gordon,
who will become sole CEO of Consumer & Community Banking, overseeing the
entire offering of consumer products and services.
Corporate & Investment Bank
The J.P. Morgan wholesale groups have made similar strides in aligning
their businesses. The Investment Bank (IB), Treasury & Securities
Services (TSS), and the Global Corporate Bank businesses currently serve
many of the same corporate and investor clients, and they are now being
combined into the Corporate & Investment Bank, which we believe will be
the strongest and most complete institutional client franchise in the
industry.
The benefits of the Corporate & Investment Bank include a shared balance
sheet that can more effectively deliver credit to clients in the form
most helpful to them, as well as the benefits of scale that come from
combined resources, infrastructure and technology. A globally
coordinated coverage team also can better support clients in an
increasingly complex regulatory and economic environment with a
comprehensive suite of products and services.
As a result of these changes, Jes Staley, CEO of the Investment Bank,
will become Chairman of J.P. Morgan’s Corporate & Investment Bank, a new
position, and will remain on the firm’s Operating Committee. In this
role, he will head a group of senior executives who will work together
to develop a view of what global banking will look like in the years
ahead. More specifically, the team will focus on changing client needs,
the impact of technology, the extensive requirements of global
regulatory reform, future trade and investment flows and other important
issues. Remaining Chairman of the firm’s International Steering
Committee, Jes will continue to oversee the continued expansion of the
J.P. Morgan client franchise internationally, while ensuring an
effective transition of his current responsibilities to new leaders in
the business.
Mike Cavanagh, head of TSS, and Daniel Pinto, head of EMEA and Global
Fixed Income, will become co-CEOs of the Corporate & Investment Bank.
The global businesses of the Corporate & Investment Bank will be
organized into two main groups: Banking, which will include Investment
Banking, Global Corporate Bank and Treasury Services; and Markets &
Investor Services, which will include Fixed Income, Equities,
Commodities as well as Prime Services and Securities Clearing.
While Mike and Daniel will run the business as a unified entity, Mike
will be the first point of contact for escalation and decision-making
for the Banking businesses, while Daniel will have that role for Markets
& Investor Services. Daniel will join Mike and Jes as members of the
firmwide Operating Committee, all reporting to Jamie Dimon, Chairman and
CEO.
Asset Management and Commercial Banking
The company’s Asset Management and Commercial Banking businesses, which
serve a broad range of customers, companies and institutions, will
remain separately managed from the other businesses. Mary Erdoes
continues as CEO of Asset Management, and Douglas Petno remains head the
Commercial Bank. They’ll work closely with leaders of the other
businesses as needed to find ways to better integrate their client
expertise and products across the firm.
Corporate
Matt Zames will remain head of the Chief Investment Office and Mortgage
Capital Markets, and he will also become co-Chief Operating Officer of
the entire firm with Frank Bisignano. In his co-COO role, Matt will also
have Finance and Regulatory Affairs reporting to him. Frank will be
responsible for Technology & Operations, Security & Resiliency, Real
Estate, Procurement and General Services. Both will remain on the
firmwide Operating Committee.
Commenting on the changes, Jamie Dimon said: “We are blessed with
extraordinary leaders and outstanding businesses across our company.
Today’s appointments are a natural step in aligning our businesses more
closely to make our company even stronger.”
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services
firm with assets of $2.3 trillion and operations in more than 60
countries. The firm is a leader in investment banking, financial
services for consumers, small business and commercial banking, financial
transaction processing, asset management and private equity. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves
millions of consumers in the United States and many of the world’s most
prominent corporate, institutional and government clients under its J.P.
Morgan and Chase brands. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.
