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'Whale' of a shakeup at JPMorgan

JPMorgan Chase recently announced some restructuring among top brass.

Often, when a company experiences a major loss or commits some kind of PR faux pas, there is a reshuffling of management. As such, some big changes were recently made in the C-suite at JPMorgan Chase.

On July 28, JPMorgan announced that Matt Zames, formerly the co-head of global fixed income, will take over the role of co-chief operating officer at the investment banking firm, sharing the responsibility with Frank Bisignano. According to a New York Times analysis of the shakeup, the company's CFO, Douglas Braunstein, will now report directly to Zames, rather than CEO Jamie Dimon. Zames will also remain head of the Chief Investment Office and Mortgage Capital Markets.

Several divisions within JPMorgan will be under new leadership, as well. In the Consumer and Community Banking division, Todd Maclin and Gordon Smith will take the helm as co-CEOs. Maclin had formerly been in charge of the company's retail bank, and Smith held the reins of the company's credit card division. Smith is also slated to take over the company's mortgage interests from Bisignano in 2013.

JPMorgan has also created a new division within itself to better manage its investments. Recognizing that at least three of the company's divisions served many of the same clients - the investment bank, treasury and securities services, and the global corporate bank businesses - Dimon decided to merge them into one section. The new Corporate & Investment Bank will be helmed by Jes Staley, former CEO of the investment bank, who will assume the position of Chairman in the new division. Joining him will be co-CEOs Mike Cavanagh and Daniel Pinto.

According to the company, the new corporate and investment bank will benefit clients by improving access to credit, and improving support through global coordination, which JPMorgan hopes will help clients navigate the increasingly complex world of financial regulation.

“We are blessed with extraordinary leaders and outstanding businesses across our company," said CEO Jamie Dimon. "Today’s appointments are a natural step in aligning our businesses more closely to make our company even stronger.”

The shakeup comes in the wake of a massive trading losses made by the so-called "London Whale." Initial reports indicated losses of roughly $2 billion, but subsequent estimates showed the losses could eventually total closer to $7.5 billion under a worst-case scenario.

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