New York - JPMorgan Chase & Company chairman and CEO Jamie Dimon has given up the title of chairman of the company's main bank subsidiary to conform with a new internal policy on multiple roles.
Dimon has been under regulator scrutiny since the company last year disclosed it was losing billions of dollars on derivatives in what has become known as the “London Whale” trades. At this year's annual meeting, he won a vote of confidence called, in part, because of a breakdown in risk controls.
Dimon turned over the title of chairman of the deposit-taking unit, JPMorgan Chase Bank, N.A., to a fellow director of the holding company, William Weldon, on July 1, a JPMorgan Chase & Company spokesman said.
Dimon is now chairman emeritus of the subsidiary, according to a document released on Thursday, which is the public portion of the company's so-called “living will” filed with the Federal Deposit Insurance Corporation and Federal Reserve. Living wills of bank holding companies describe how the companies could be taken apart if they became financially distressed.
Dimon gave up the title to conform with a new internal policy whereby the holding company's chairman is not also the chairman of a subsidiary, according to the spokesman.
The change in Dimon's title at the subsidiary was reported earlier on Thursday by the Wall Street Journal.
JPMorgan recently agreed to pay nearly $1-billion in penalties to regulators for its handling of the derivatives debacle. It is also in negotiations with federal and state officials to settle, for as much as $11-billion, allegations of wrongdoing in its sales of mortgage securities. - Reuters