JPMorgan Chase & Company (JPM) said yesterday that it has shuffled the senior leadership of its investment banking and asset management businesses.
The bank said that Steve Black, 57, will become the executive chairman of the investment bank. Steve was previously co-CEO of the division along with Bill Winters, 48, who is leaving the company. Black will however stay on as executive chairman through the end of 2010.
Jes Staley, 53, is taking over as CEO of the investment bank after serving as head of asset management.
Mary Callahan Erdoes, 42, will replace Staley as head of asset management business after serving as CEO of the private banking operations.
According to Jamie Dimon, Chairman and CEO of JPMorgan, the moves were intended to clarify the bank’s succession plans to the board and shareholders. But the timing of these changes and unexpected departure of Mr Winters mark a record year for JPMorgan’s investment bank.
The investment banking unit has been among the strong performers of JPMorgan during the last few quarters with the recovery of the credit market. Profits in the investment bank more than tripled in the second quarter of 2009 as a result of higher underwriting fees and gains in its bonds business.
JPMorgan is a leading global financial services firm with assets of $2.0 trillion and operations in more than 60 countries. Though results for the last few quarters benefited from a strong performance by the investment bank, Consumer Lending and Card Services deteriorated due to continued high levels of credit costs. We anticipate continued synergies from the company’s diversification and strong capital position, but increasing provisions and worsening credit quality will be a drag on upcoming results.
Read the full analyst report on “JPM”
Zacks Investment Research
