JP Morgan steps up succession plans with CIB shake-up
JP Morgan has named Jennifer Piepszak and Troy Rohrbaugh to run an expanded commercial and investment bank, which draws commercial banking into the enlarged business and positions them as leading candidates to take over from long-time CEO Jamie Dimon whenever he steps down.
Daniel Pinto, who has built the corporate and investment bank arm into a Wall Street powerhouse during his 12 years running the business, will step down as CIB chief but remain president and chief operating officer of the bank.
The changes are effective immediately and will see the enlarged CIB pull together investment banking, commercial banking, corporate banking, markets, securities services and payments. JP Morgan said the aim is to "enhance and deepen" how investment bankers and bankers in commercial and corporate arms deliver the set of wholesale products across clients, from middle-market firms to large multinationals.
“Today's reorg comes from a position of strength and shows how JPM can cross-pollinate skills as it expands roles and moves individuals across business lines,” said Wells Fargo analyst Mike Mayo in a note.
Piepszak was co-chief executive of consumer and community banking and Rohrbaugh was co-head of markets and securities services.
JP Morgan said the changes had a twin purpose. "The senior management changes and new alignments announced today will help the company serve clients even better as well as further develop the company’s most senior leaders," it said.
The raft of senior changes at the biggest US bank also see Viswas Raghavan become sole head of global investment banking. He was co-head with Jim Casey, who wanted to take on a new role at the bank, JP Morgan said. That role will be announced shortly.
The bank said Marc Badrichani, who ran markets and securities services with Rohrbaugh, is leaving the firm "to pursue outside opportunities".
Jason Sippel and Pranav Thakur will become co-heads of the markets trading business. Tim Fitzgerald will continue to lead securities services.
The changes appear to be a major step in succession planning. Piepszak had already been seen as one of the leading candidates to replace Dimon, and the latest changes appear to put Rohrbaugh in that bracket too.
Rohrbaugh joined JP Morgan in 2005 from Goldman Sachs and has always been in the markets business, moving up through the ranks in a variety of roles, including as head of markets and head of macro markets after joining as head of foreign exchange derivatives. Although he has limited experience outside markets, that is arguably the most significant area in terms of risk management.
Marianne Lake, also seen as a candidate to step into Dimon's shoes, will become sole CEO of CCB, which has 80 million customers. Lake was previously chief financial officer and was appointed co-head of CCB at the same time as Piepszak in May 2021.
Dimon, 67, has run JP Morgan since 2005. He is the longest serving CEO of a major US bank and there is frequent speculation about how long he plans to stay at the top. In 2021, he was awarded a US$53m retention bonus to keep him at the bank until at least mid-2026.
Additional reporting by Philip Scipio