Monday, April 29, 2013
NEW YORK (AP) — JPMorgan Chase & Co. said Sunday that one of its co-chief operating officers is leaving the company, marking the latest high-profile departure since the bank's massive trading loss last year.
Frank Bisignano will become CEO of payment processor First Data Corp. on Monday. Matt Zames, who was co-chief operating officer with Bisignano, will become the sole COO of JPMorgan Chase effective immediately.
First Data said Bisignano, 53, succeeds Ed Labry, who has been interim CEO and president of Retail and Alliance Services since Jan. 28. Labry will continue as president of Retail and Alliance Services.
Bisignano and Zames were named co-chief operating officers in a management reshuffle in July after JPMorgan Chase revealed a trading loss of about $6 billion. The massive loss became a focus of the risky bets taken at large banks and oversight of traders who make those bets. It also prompted congressional hearings, as well as investigations by international regulators.
Others called for the resignation of CEO Jamie Dimon, who initially called the trade a "tempest in a teapot." Dimon later backtracked and apologized several times for the mischaracterization after the scope of the loss was revealed.
The Wall Street Journal first reported that Bisignano would be the ninth executive in the past year and a half to leave Dimon's operating committee of key decision makers.
Dimon and Bisignano have known each other since the 1980s, according to the Journal, and worked together at Citibank.
Before he was named co-chief operating officer this summer, Zames had taken over as chief investment officer for Ina Drew, who resigned in the days after the big trading loss was revealed.
JPMorgan also said Sunday that Paul Compton will become chief administrative officer. He is currently co-chief administrative officer of the Corporate & Investment Bank and deputy head of operations for JPMorgan Chase.
Louis Rauchenberger, who shares Compton's current role, will become sole chief administrative officer of the Corporate and Investment Bank.