Hidden deep in the pages of JPMorgan’s Living Will report just realesed by the FDIC, the WSJ has found 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.
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.
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.
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.
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.”