J.P. Morgan Chase to Slash 8,000 Jobs
During an investors’ day presentation this week, JPMorgan Chase & Co. officials disclosed that they will be laying off 8,000 staff members from its consumer-oriented businesses while adding to its control groups such as compliance with the hiring of 3,000 new staff, officials say.
The net of these actions will mean that the bank will shrink its rolls by 5,000. The total number of employees will decrease from 265,000 to 260,000 over the coming year, officials say. The adjusted headcount reduction for 2013 was 1,250, as of January 1, 2014.
The job cuts for this year is part of an effort to cut expenses at its branches and bolster its mortgage business, officials say. The layoffs are slated to come from the home loans group – 6,000 jobs – and the branch and credit card network – 2,000 jobs, according to bank officials.
HedgeMark to Shuffle Execs as BNY’s Full Acquisition Looms
Ken Phillips, founder and CEO of HedgeMark International, will be retiring once service provider BNY Mellon completes its acquisition of the vendor of hedge fund managed account and risk analytic services, officials say.
BNY Mellon, which owns 35% of HedgeMark, will be acquiring the remaining 65% as part of a deal announced this week. Phillips announced his intention to retire when the transaction is completed. BNY Mellon has held its ownership stake in HedgeMark since 2011.
Before forming HedgeMark, Phillips served nearly seven years as chief investment officer and managing member of RCG Capital Advisors. Before forming RCG, Phillips was the founder, president and CEO of PMC International (now Envestnet PMC), a manager and administrator of separately managed account platforms.
HedgeMark’s board of directors will appoint Andrew Lapkin, current president, as its new CEO, officials say. Lapkin will help supervise the transition and report to Samir Pandiri, BNY Mellon executive vice president and CEO of Asset Servicing.
Prior to joining HedgeMark, Lapkin was the president and chief operating officer of Measurisk, a JP Morgan company that was formerly affiliated with The Bear Stearns Companies. Before Measurisk, Lapkin was a vice president at Bankers Trust in charge of the development of RAROC 2020, now known as DB Risk Office, a market risk management system. He was also a product manager for BT’s custody and performance reporting system. Before Bankers Trust, he was a senior consultant at Andersen Consulting.
The deal is expected to close in the second quarter of this year, subject to regulatory approval, officials say. Financial terms of the transaction were not disclosed.
The full acquisition will help BNY Mellon better meet institutional clients’ demands for improved governance, risk reporting, and transparency as they shift into alternatives, especially hedge funds, said Pandiri in a statement. BNY Mellon will integrate HedgeMark’s capabilities with its Global Risk Solutions offerings. “It marks the next step in our strategy to provide sharper insight into hedge fund investments and enterprise risk across a client’s entire portfolio.” Pandiri says.
Founded in 2009 and headquartered New York, HedgeMark offers structuring, oversight, and risk monitoring services for hedge funds, particularly dedicated managed accounts, officials say.
Ex-Treasury Under Secretary Is Nominee for BNY Board
Jeffrey A. Goldstein,
former under secretary,
United States Treasury for Domestic Finance
A former Under Secretary of the United States Treasury for Domestic Finance, Jeffrey A. Goldstein is on the slate of director nominees for election at service provider BNY Mellon’s annual meeting on April 8, 2014, officials say.
Goldstein is among the nominees upon the recommendation of BNY Mellon’s Corporate Governance and Nominating Committee.
Goldstein is currently an executive at the private equity firm Hellman & Friedman LLC, which focuses on investments in the financial services sector. His prior experience includes serving as managing director as well as chief financial officer of the World Bank.
If elected, Goldstein and 12 other nominees would serve a term of one year until the 2015 Annual Meeting. Gerald L. Hassell, BNY Mellon chairman and CEO, is the only management director.
Goldstein was counselor to the Secretary of the Treasury and Under Secretary of the U.S. Treasury from 2009 to 2011. He is a recipient of the Alexander Hamilton award, the highest honor for a presidential appointee. The Bank of New York was founded by Alexander Hamilton in 1784.
Goldstein’s early career included teaching economics at Princeton University. He also worked at the Brookings Institution. In 1984, he joined James D. Wolfensohn Inc., an investment banking firm that was later acquired by Bankers Trust in 1996. Goldstein became co-chairman of BT Wolfensohn and served as a member of Bankers Trust’s management committee.
In 1999, Goldstein was named a managing director of the World Bank and became its chief financial officer in 2003, officials say. He joined Hellman & Friedman in 2004 and departed the firm when nominated to the Treasury position.
Need a Reprint?
Leave a Reply