Hidden deep in the pages of JPMorgan's Living Will report just realesed by the FDIC, the WSJ has found [3] that CEO Jamie Dimon (still Chairman of the overall JPM entity) has relinquished his position as Chairman of the banking conglomerate's major deposit-taking subsidiary. While the bank claims this is "solely to create a more uniform structure among our subsidiary boards," one can't help but feel this is driven by unrelenting pressure from the administration (and its regulators) as the deposit-taking subsidiary had its confidential management rating downgraded from a 2 to a 3 on a scale of 5, a rare score for such a large institution; and faces public enforcement actions demanding changes to alleged risk-management, anti-money-laundering and debt-collection weaknesses.
Via WSJ, [3]
James Dimon has relinquished his chairmanship of J.P. Morgan Chase & Co.'s main operating bank, according to public records and people familiar with the situation.
He shed the title on July 1, one of these people said. In a document made public Thursday, Mr. Dimon is listed as chairman emeritus of J.P. Morgan Chase Bank N.A., the deposit-taking subsidiary that operates branches in 23 states as well as several other countries.
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The move doesn't affect Mr. Dimon's status as CEO or chairman of J.P. Morgan's parent company board, a more powerful body that provides oversight of all company operations.
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A J.P. Morgan spokesman said the governance change for one of J.P. Morgan's largest subsidiaries wasn't the result of outside pressure.
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The deposit-taking subsidiary once chaired by Mr. Dimon last year had its confidential management rating downgraded from a 2 to a 3 on a scale of 5, a rare score for such a large institution, say people familiar with the move. Since January, that subsidiary's primary regulator has issued public enforcement actions demanding changes to alleged risk-management, anti-money-laundering and debt-collection weaknesses. The bank is working to fix the problems identified by the orders.
The J.P. Morgan Chase spokesman said the change in Mr. Dimon's title happened "solely to create a more uniform structure among our subsidiary boards."