JPMorgan Chase (asset size $2.32 trillion) announced today that it is consolidating a number of its businesses, placing new and increased responsibilities in the hands of some of its executives.
The bank is accelerating the integration of its Consumer businesses, which will be headed by co-CEO's of Consumer and Community Banking Todd Maclin and Gordon Smith. In this role the two executives will head up the Consumer and Business Banking, Card and Auto and (eventually) Mortgage Banking operations of the bank. Maclin will move on to the role of Chairman of this business at the end of 2013, and Smith will become the sole CEO of Consumer and Community Banking.
Frank Bisignano, who has led JPMorgan Chase's Mortgage Banking operations since early 2011, will be elevated to co-COO of the entire company after the Mortgage Banking department is brought under Gordon Smith in early 2013.
New York-based JPMorgan Chase also said that since its Investment Bank, Treasury and Securities Services and Global Corporate Bank businesses are serving many of the same clients, they will be combined into the Corporate and Investment Bank. The new business will be able to provide a shared balance sheet for clients that can more effectively deliver credit, and will also deliver benefits in terms of scale, the bank said in a statement. The single investment and corporate banking operation will also be able to offer a comprehensive suite of products and services, the bank added.
Jes Staley, CEO of JPMorgan's Investment Bank, will become the Chairman of the new Corporate and Investment Bank. The executives of the new business will focus on changing client needs, global regulatory reform and future trade and investment opportunities, among other issues, JPMorgan said. Staley will also remain Chairman of the bank's International Steering Committee that oversees the expansion of the bank's client franchise internationally.
Mike Cavanagh, head of TSS at JPMorgan, and Daniel Pinto, the head of EMEA and Global Fixed Income at the bank, will be the new co-CEO's of the Corporate and Investment Bank. The new business will be split into two divisions. The Banking division will include the Investment Banking, Global Corporate Bank and Treasury Services departments. The Markets and Investor Services division will include the Fixed Income, Equities, Commodities, Prime Services and Securities Clearing. Cavanagh will be the first point of contact for the Banking division, while Pinto will fill that role for the Markets and Investor Services division.
Pinto will join the bank's operating committee, along with Cavanagh and Staley who are already members, that reports to Jamie Dimon, JPMorgan's Chairman and CEO.
"Today's appointments are a natural step in aligning our businesses more closely to make our company even stronger," Dimon said in the company's statement.