Dimon Promotes CIO Cleaner
NEW YORK (TheStreet) -- JPMorgan Chase (JPM) on Friday said that Matt Zames -- currently cleaning up after the Chief Investment Office (CIO) debacle -- will become co-chief operating officer of the company in early 2013.
Zames took over the CIO in May, following JPMorgan Chase CEO James Dimon's announcement that the company was facing large trading losses from the CIO's hedging activities. Dimon initially estimated that second-quarter trading losses would be slightly over $2 billion, but when JPMorgan Chase on July 13 announced its second-quarter results, the trading losses came in at $4.4 billion.
Dimon said during the second-quarter earnings conference call that the company had "significantly reduced the total synthetic credit risk in CIO."
Frank Bisignano -- who currently heads the company's Mortgage Banking unit -- will become co-COO, and "will transition the Mortgage business to Gordon Smith," in early 2013.
The company also announced that its three wholesale groups that "currently serve many of the same corporate and investor clients" are being combined into a new unit called the Corporate & Investment Bank, with Jes Staley, the current CEO of the Investment Bank, serving as Chairman of the new unit. The company said that Staley will remain chairman of JPMorgan Chase's International Steering Committee.
In his new role, JPMorgan said that Staley and his 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."
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-- Written by Philip van Doorn in Jupiter, Fla.
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