JPMorgan creates more management checks and balances
By David Henry and Jed Horowitz
NEW YORK (Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon reshuffled his management team, in a step that analysts see as creating more checks and balances in the upper ranks after the bank suffered from embarrassing trading losses.
Analysts said the changes, announced on Friday, position Michael Cavanagh and Daniel Pinto as prime candidates to succeed Dimon, 56, when he is ready to retire.
Cavanagh, 46, and Pinto, 49, were named co-chiefs of commercial and investment banking. Matt Zames, 41, was named co-chief operating officer and is also seen as a strong candidate to succeed Dimon.
In an interview, Dimon said that he has no plans to retire soon, but that he is always thinking about grooming successors.
"I serve at the pleasure of the board, but I do hope to be here for many, many more years," Dimon said.
The shake-up will result in a number of senior positions that are jointly held by two executives, at least temporarily.
Analysts said these co-heads may help prevent the bank from sustaining the same kinds of trading losses that occurred in the first half of the year. JPMorgan said two weeks ago that it had sustained nearly $6 billion of trading losses from bad bets made in its Chief Investment Office.
That group had been headed by Ina Drew before the losses surfaced in May and she left. The bank has admitted that few scrutinized Drew's group. Continued...