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Two top executives of JPMorgan Chase & Co. — commercial-banking head Todd Maclin and international operations head Heidi Miller — are expected to step down from their posts.
June 6
JPMorgan Chase & Co. filled in the blanks Tuesday on an executive shake-up that had been anticipated for a week.
Todd Maclin, 56, was named head of much of retail financial services, replacing Charles Scharf. Maclin will be in charge of branching, private client services as well as consumer and small business banking. He remains head commercial banking.
Scharf will become a partner in New York company's private equity arm, One Equity Partners. Scharf, 46, had been chief executive of retail financial services since 2004.
As expected, the company said Heidi Miller, 57, president of international strategy since June 2010, will retire early next year.
Miller's duties will be absorbed by Jes Staley, 54, the CEO of investment banking, who will add to his responsibilities coordinating overseas affairs with the heads of the two other international business lines: treasury and securities services and asset management.
A press release said that move follows "Miller's recommendation that responsibilities for international activities be embedded back into the (company's broader) businesses."
Other announcements were made.
Gordon Smith, 52, CEO of card services, will take on a number of new responsibilities: auto finance, student lending and management of marketing.
The company said Doug Petno, chief operating officer of the commercial bank, will continue in his role, reporting to Maclin.
The moves are striking but not unusual for JPMorgan Chase. CEO Jamie Dimon's management philosophy hinges on putting talented people into unfamiliar roles to strengthen the company's bench of talent.
Miller's appointment last year was among a succession of moves that that put new people in charge three of its six key business lines. Such shuffles let potential successors prove their mettle to the company's board, according to Dimon's philosophy.
Early on Tuesday, Bloomberg News reported that JPMorgan Chase had ousted mortgage chief David Lowman after it overcharged active-duty military personnel on loans and improperly foreclosed on other borrowers.
"Dave Lowman and I have decided he will leave the firm," Frank Bisignano, the head of home lending, said Tuesday in an internal employee memo.
JPMorgan Chase has been taking steps this year to repair its mortgage unit, which posted at least $3.3 billion in losses for the first quarter. Lowman, who ran home-lending since leaving Citigroup Inc. in 2006, was directed in February to start reporting to Bisignano, JPMorgan Chase's chief administrative officer. It then hired Cindy Armine, Citigroup's chief compliance officer, last month to increase oversight as chief control officer of home lending.
