JPMorgan Chase management changes
There continue to be articles in the business press about management changes announced at JPMorgan Chase last week. Here are a few observations:
---The departure of Bill Winters represents the loss of a valuable member of the firm, as all press coverage has concluded. In temperament, tenacity, confidence, and decisiveness it could be said that he is comparable to Jamie Dimon.
---The naming of Jes Staley as head of the investment bank was a surprise to many. Staley has never managed a sales and trading operation in equities, derivatives, fx, or bonds, areas that represent much of the risk of investment banking. Apparently he is highly regarded by Dimon.
---Media conclusions that Staley is now heir apparent for the CEO job are unlikely to be accurate. He certainly would be one of a number of candidates and at the moment it is convenient cover for a Board that wants some succession clarity from the dominant and demonstrably capable CEO Dimon.
---Suggestions that Dimon may become Secretary of the Treasury at some point seem far-fetched. He thrives on direct executive management and decision-making. Seeing him in a government role that requires compromise or at least the appearance of compromise as well as kowtowing to the many seriously limited members of Congress at every turn is hard to imagine. Unless he ultimately has a secret desire to be President, of it all, the powerful Treasury job would be a stepping stone to nowhere for the 53 year old.
One could conclude from all of this that CEO Dimon now has the time to devote the majority of his attention to the investment bank. Over his several years as CEO he has cleaned up both the weak and the too outspoken in executive corporate staff and he has fully revamped people and process in the consumer banking areas. His career with Sandy Weill for many years was primarily in-house M&A in building the Weill conglomerate and then he was eventually running Smith Barney. His strongest interest may be investment banking and he can now go at it full tilt with his longtime buddy Steve Black in a supporting role, Staley as his guy, and Winters no longer there for an occasional clash.
This is all conjecture from afar, maybe accurate, maybe not.
---The departure of Bill Winters represents the loss of a valuable member of the firm, as all press coverage has concluded. In temperament, tenacity, confidence, and decisiveness it could be said that he is comparable to Jamie Dimon.
---The naming of Jes Staley as head of the investment bank was a surprise to many. Staley has never managed a sales and trading operation in equities, derivatives, fx, or bonds, areas that represent much of the risk of investment banking. Apparently he is highly regarded by Dimon.
---Media conclusions that Staley is now heir apparent for the CEO job are unlikely to be accurate. He certainly would be one of a number of candidates and at the moment it is convenient cover for a Board that wants some succession clarity from the dominant and demonstrably capable CEO Dimon.
---Suggestions that Dimon may become Secretary of the Treasury at some point seem far-fetched. He thrives on direct executive management and decision-making. Seeing him in a government role that requires compromise or at least the appearance of compromise as well as kowtowing to the many seriously limited members of Congress at every turn is hard to imagine. Unless he ultimately has a secret desire to be President, of it all, the powerful Treasury job would be a stepping stone to nowhere for the 53 year old.
One could conclude from all of this that CEO Dimon now has the time to devote the majority of his attention to the investment bank. Over his several years as CEO he has cleaned up both the weak and the too outspoken in executive corporate staff and he has fully revamped people and process in the consumer banking areas. His career with Sandy Weill for many years was primarily in-house M&A in building the Weill conglomerate and then he was eventually running Smith Barney. His strongest interest may be investment banking and he can now go at it full tilt with his longtime buddy Steve Black in a supporting role, Staley as his guy, and Winters no longer there for an occasional clash.
This is all conjecture from afar, maybe accurate, maybe not.
posted by John Borden at 2:36 PM
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