Your Banker Quit His Job This Week

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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2903687, ~/Articles/ArticleHandler.aspx, 10/22/2014 11:27:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement