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JPMorgan Chase & Co. (NYSE: JPM) announced several executive changes on Tuesday, including naming two of its potential candidates to succeed CEO Jamie Dimon as co-heads of its largest division, consumer and community banking.
Jennifer Peipszak (CFO of the bank) and Marianne Lake (CEO of consumer lending), the Wall Street giant said, will now run its consumer banking operations as Gordon Smith announced retirement scheduled for the end of the year. Smith also holds the titles of chief operating officer and co-president at JPMorgan Chase.
Jeremy Barnum to replace Jennifer Peipszak as the CFO
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Consumer banking is JPMorgan’s largest division that houses auto finance, home lending, credit card, and U.S. wealth management businesses. The segment generated more than $50 billion (£35.36 billion) in revenue last year. The news comes more than a month after JPM increased standards for new mortgage borrowers to minimise lending risk.
The announcement positions the two female executives as the strongest contenders to succeed Dimon. Replacing Peipszak as the chief financial officer of the largest U.S. bank is Jeremy Barnum, who was, thus far, leading the Global Research for corporate and investment banking.
Other notable announcements on Tuesday involve Daniel Pinto, who has been promoted to the investment bank’s sole president and the chief operating officer. Before Tuesday’s changes, Pinto was the co-president and head of corporate and investment banking. He also serves as the emergency CEO of JPM and shared the helm with Gordon Smith when Dimon had an emergency heart surgery last year.
Dimon has not yet expressed plans of stepping down
In 2019, Gordon Smith declined an offer to lead Wells Fargo as its CEO. After his retirement, he intends to continue serving JPMorgan Chase as an adviser. In his statement, Jamie Dimon said, “Smith was one of the best hires I’ve ever made.”
Dimon, however, has not yet expressed plans of exiting the role and is likely to lead the bank for another five to six years. Last week, JPM announced plans of issuing credit cards to people with no credit scores.
JPMorgan Chase tanked more than 1% in the stock market on Wednesday morning but recovered almost half of the intraday decline later on. Including the price action, it is now trading at $160 per share versus $126 per share at the start of the year. At the time of writing, JPM is valued at over £483 billion and has a price to earnings ratio of 12.68.
