Your Banker Quit His Job This Week

The past few days saw a host of executive transitions, with high-level moves at Wells Fargo, JPMorgan Chase, and Citigroup. Bank of America, meanwhile, apparently nudged closer to settling its second big legal case in as many weeks.

Apr 4, 2014 at 2:00PM

This week, sandwiched between the results of the Federal Reserve's CCAR and the start of Q1 bank earnings season, much of the news in the financial sector had to do with executives who resigned, were hired, or moved to a new job.

Arguably the most significant executive suite change was at Wells Fargo (NYSE:WFC). The big lender wasn't kidding when on April Fool's Day it announced that it is replacing its chief financial officer. John Shrewsberry, currently the head of its Wells Fargo Securities capital markets division, will take the place of Tim Sloan in late June. In turn, Sloan will move on to become Wells Fargo's head of wholesale banking.

Personnel comings and goings were also the topic of discussion at JPMorgan Chase (NYSE:JPM) over the past few days. The head of the bank's sprawling commodities operations Blythe Masters -- considered to be one of the most powerful women on Wall Street -- is vacating her position following the company's sale of its physical commodities business. Although that end of finance isn't as lucrative as it once was, the resignation of the 27-year company veteran will almost certainly have an impact on morale.

Masters' is the second high-level departure for JPMorgan Chase in as many weeks. Last week, investment bank co-chief Mike Cavanagh, once considered a possible successor to CEO Jamie Dimon, undoubtedly surprised his employers when he tendered his resignation. He's stepping down to take a job as co-chief operating officer of financial services firm Carlyle Group (NASDAQ:CG), and won't be replaced -- Daniel Pinto is to take the reins as sole CEO of the division.

In contrast, the talk of human resources over at Citigroup (NYSE:C) was over who was staying at the company, rather than departing. On Thursday the bank said Gene McQuade, who recently served notice that he would retire as CEO of core subsidiary Citibank, will head the company's CCAR appeal. Citigroup was one of only five banks that did not get its capital allocation plans approved;hopefully McQuade will be able to lead a team that can draft a winning appeal, thus breathing some life into the stock.

No big heads rolled or were talked out of retirement at Bank of America (NYSE:BAC) this week. Rather, the major headline for the company was in the legal sphere. On Thursday, news leaked out that Bank of America was nearing a settlement with the Consumer Financial Protection Bureau over the add-ons it allegedly pressured its credit card customers to sign up for. Apparently the firm could cough up over $800 million to put the matter to rest.

Bank of America is in a settling mood these days, closing a deal last week with the Federal Housing Finance Agency to pay a roughly $9.5 billion settlement in order to retire allegations about fraudulent claims on some of its mortgage-backed securities.

Next week is going to be an eventful one for the banks, with Q1 results coming down the pipe from Wells Fargo and JPMorgan Chase. This will put the new bank earnings season into gear, and headlines about profits and losses are sure to dominate no matter what changes occur in the executive suite.

Take advantage of this little-known tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo, and owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers