John Hogan would be replaced by Ashley Bacon at JPMorgan Chase & Co (NYSE:JPM), Wells Fargo & Co (NYSE:WFC)

Posted by Lynn Eisler June 14, 2013 0 Comment 1772 views


On Thursday, Jamie Dimon, CEO of JPMorgan Chase & Co (NYSE:JPM) said that John Hogan, the company’s chief risk officer may leave the company. Hogan had assumed the post last year when the company had just begun losing billions of dollars on trades of its London Whale derivatives. Hogan had taken a leave in January and will return to work starting Monday. In a memo to the company’s employees, Dimon said that initially, Hogan will hold the new, chairman of risk title. While Hogan was on leave, Ashley Bacon was the interim head. The latter will now replace Hogan as chief risk officer.

Everyone is fighting a battle

In the April and May of 2012 JPM’s Chief Investment Officer suffered massive trading losses. These were a result of transactions that had been booked via its London branch. Ina Drew, the Chief Investment Officer was in charge of the unit at that point of time, who has stepped down, since. It had been reported that, as part of JPM’s “hedging” strategy,  a series of derivative transactions that involved credit default swaps (CDS), had been entered into. The current change is evidently a backlash of that occurrence. Dimon has also been more silent since the failures that were associated with JPM’s “London Whale” losses came to the fore. He has been fighting a shareholder move for splitting the chairman and Chief Executive Officer roles.

No stumping this man

John Stumpf, the Wells Fargo & Co (NYSE:WFC) chief executive may be easing his way onto the pedestal. At $210 billion WFC, is the United States’ biggest bank by market value, and he is at the helm of it. However, he has always maintained a low profile in comparison to his peers. However, of late, he has been known to be critiquing regulation a little more and has been edging into a role that until very recently had been filled by Jamie Dimon, the JPMorgan boss.

And so it seems that the JPMorgan Chase & Co (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) top brass is playing it low for the moment, are probably just biding their time and possibly hoping that the investment world will forget and maybe forgive.


About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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