JPMorgan CEO Hopefuls To Run Its Consumer Banking Arm
The Wall Street Journal reported on Tuesday (May 18) that Marianne Lake, the firm’s consumer lending chief, and CFO Jennifer Piepszak will begin running the consumer and community bank operations as Gordon Smith retires as co-president and co-chief. Jeremy Barnum, who runs J.P. Morgan’s global research division, will become the new finance chief.
“The move comes two years after J.P. Morgan put Ms. Lake and Ms. Piepszak in their current roles and established them as front-runners to one day run America’s biggest bank,” the Journal wrote. “The decision to place the women, both 51 years old, in charge of a unit that serves half of all U.S. households and accounts for roughly 40 percent of the bank’s profits further cements that status.”
Smith and Daniel Pinto, who runs the bank’s corporate/investment operations, jointly ran the entire company for a brief period — 62 — puts him out of the running to become a permanent successor for Dimon, who turns 66 next year. While it’s not clear when Dimon will retire, Smith’s departure leaves Pinto alone in the CEO role in the event of what the bank refers to as the “Jamie gets hit by a bus” scenario. The Journal noted that Smith is the last remaining leader who served with Dimon during the 2008 financial crisis. Dimon has called him one of his best-ever hires.
“J.P. Morgan’s consumer and card operations have expanded dramatically in recent years,” noted the report. “The bank has bet big on its popular Sapphire credit cards. And by the end of July, it will have branches in every U.S. state but Alaska and Hawaii.”
Tuesday’s announcement comes just days after the news that Sherry Ann Mohan, the chief financial officer at Goldman Sachs, was leaving that firm to take on the same role at J.P. Morgan.