Banking

Dimon Criticizes Wells For ‘Irresponsible’ Succession Plan

JPMorgan CEO Jamie Dimon

The CEO of JPMorgan, Jamie Dimon, said Wells Fargo was “irresponsible” for not having a succession plan in place before announcing CEO Tim Sloan’s departure, according to a report by Bloomberg.

Sloan left quickly right after a congressional hearing as well as a lot of public criticism from regulators over the bank’s numerous scandals. When Sloan left, there had been no talks with a replacement, nor had a recruitment company been chosen to help run the search.

The bank’s general counsel, Allen Parker, took over in March as an interim CEO while the search continues.

“I’d be surprised if regulators wanted that to happen because it’s irresponsible,” Dimon said of the lack of a succession plan, adding that he has no idea what triggered Sloan’s departure.

Many of Dimon’s associates, including deputies and possible successors, have been named as potential Wells Fargo CEOs. Dimon said he’s worried that some of his top talent will be pulled away from his company.

In April, JPMorgan made its own changes with executives Marianne Lake and Jennifer Piepszak, by moving around their responsibilities to help them broaden their experience with the company.

“It’s important to move people around,” Dimon said. “I think we have two stars [in Lake and Piepszak].”

JPMorgan trading revenue dropped 1 percent to 4 percent from 5 percent during the first two months of Q2, not counting a gain, but Dimon thinks that  “The next month could dramatically change that.”

He also said the trade war between the U.S. and China has escalated past a “skirmish,” and could potentially have lasting effects on markets, as well as the economy.

The banking company said it was going to boost market share in prime-brokerage outfits and fixed-income trading in China. Credit losses, Dimon said, will probably rise across all products as businesses become more mature.

“On average, things will get worse over time, not because they’re going to get bad, but because it’s been so good for so long,” he said. “There will be a return to normal.”

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