JP Morgan (NYSE:JPM) announced a wide-ranging executive shuffle. Very predictable after the trading scandal as Jamie Dimon tries to squeegee mop out problems. Jamie Dimon did say he has plans to stay for a while which means his political career has crashed and burned. Succession planning considerations are fine but how come all of a sudden it’s so front and center.
Lets not be naïve large financial institutions do re-arrange the executive suite periodically. After the trading debacle this was very predictable. But it does have deep roots in the trading debacle. Announced during mid summer when quite frankly more than one investor is away on holiday and well after the annual meeting to avoid a back lash the deck chairs have been re-arranged.
Before the trading scandal Jamie Dimon and most observers would have said JP Morgan is a great franchise and is well-managed. The trading scandal blows up and now we are reorganized.
Ladies and Gentlemen. It is not who sits in what chair and whose star is rising or falling. It all depends on how well the controls work and how well senior officers are applying themselves to managing risk. Why is this group better or worse than the last group?
George Gutowski writes from a caveat emptor perspective.
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