Matt Zames is a rock star at J.P. Morgan. The 42-year-old, who was just named the sole chief operating officer at J.P. Morgan, has been promoted three times in less than a year. He’s now the clear frontrunner to succeed Jamie Dimon when the 57-year-old chief decides to hang them up.
Zames was introduced as J.P. Morgan’s sole chief operating officer on Sunday. He had previously shared the role with co-COO Frank Bisignano, who is leaving the firm to become the CEO of First Data Corp. Previous to that, Zames took over J.P. Morgan’s tainted chief investment office following the $6.2 billion London Whale trading debacle. He’s been credited with improving the bank’s compliance and risk management infrastructure, which showed numerous cracks following the trading scandal.
However, before entering the corporate suite last year, Zames served as the co-head of global fixed income in the investment bank. His professional history is as a driver of non-lending revenue. He’s a risk taker who now moderates risk.
For this reason, Zames appears an ideal fit to eventually take the reins from Dimon. Beneath all the rhetoric, J.P. Morgan hasn’t changed its revenue-generating strategy much since the financial crisis. Look at the bank’s first quarter performance, when it booked stronger-than-expected corporate and investment bank income while continuing to rely more on risky derivatives trading than its rivals.
Trading assets and securities holdings still outpace J.P. Morgan’s loan book. It only makes sense to groom an executive like Zames for the top job.
Coutts is building up its international wealth management team. The firm is looking to add talent in Dubai, London and Geneva.
Capital requirements normally hurt employees, forcing banks to cut staff and pare down compensation. This time around the impending rules are angering shareholders. Deutsche Bank announced plans to issue new stock, devaluing current shares, to increase capital.
In other Deutsche Bank news, the German lender saw just a 2% drop in corporate banking and securities profit during the first quarter. The balance sheet was aided by an 8% drop in compensation and benefits awarded to investment bankers.
Michele Davis, who made a name for herself as a communications aide to former Secretary of Treasury Henry Paulson during the financial crisis, is headed to the private sector. She’s been named the new global head of corporate affairs at Morgan Stanley.
Most actuaries are initially taken on as trainees, and it can take up to six years to become fully qualified. Still, the job is more about communicating than crunching numbers.
Convicted insider-trader Todd Newman has asked the court for leniency because he only made a few hundred thousand dollars from the trades. Prosecutors haven’t been swayed. They’re eyeing a five-year prison sentence.
Buzz Around the Office
Kylie Cox kissed two men at her wedding – her husband and a random guest. The 24-year-old bride gave the second man mouth-to-mouth resuscitation, saving his life.
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