Thursday’s Headlines: JPMorgan reorganizes again
Maybe this time it will work better. JPMorgan Chase announced yet another re-organization by breaking its corporate and investment banking division into two units, The Wall Street Journal reported.
Changes include the creation of a unit called Investor Services, which will include the bank's giant prime-brokerage business servicing hedge funds, as well as financing and securities lending and collateral management. Industry insiders expect custodial assets to be a growth sector as new regulation requires more collateral for swaps and other derivatives trades.
JPMorgan currently holds $17 trillion in client custodial assets. Markets and Investor Services will also include the traditional trading businesses of the investment bank.
The until will be overseen by Carlos Hernandez, who led the equities unit of the investment bank from New York. Blythe Masters, the veteran head of the commodities division, is also adding new duties handling regulatory affairs across the corporate and investment bank.
The banking unit will have three leaders, including London-based Tim Throsby who previously oversaw equities in Europe, the Middle East and Africa and global equity derivatives, and who will now head the investment bank’s equities division.
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