JPMorgan, one of the leading banks in the world, has recently made significant changes to its senior ranks in a restructuring move. While it may seem that Citi is the bank known for restructuring, JPMorgan has taken the opportunity to shake up its own top executives.
In a press release yesterday, JPMorgan used grandiose corporate vernacular to describe these changes. Instead of simply stating that people are changing jobs or leaving, the bank emphasized that individuals are “informing the company of a desire to take on an exciting new role at the firm” or “informing the company of a desire to pursue outside opportunities.” The language used in the press release is filled with gratitude and praise, with the bank expressing being “immensely grateful” and describing efforts as “outstanding” and commitments as “unwavering.”
Among the changes, Daniel Pinto, who was previously discussing hiring at Davos, is now positioned closely with Jamie Dimon, the CEO of JPMorgan. Dimon refers to Pinto as an “exceptional partner” and expresses his gratitude for their collaboration. However, it is important to note that Pinto has been stripped of his responsibilities running the corporate and investment bank. These responsibilities have been transferred to Jennifer Piepszak from the consumer bank and Troy Rohrbaugh, a former FX derivatives trader who had been overseeing markets and securities services. Additionally, Marc Badrichani, who had been running markets and securities services with Troy, is leaving the bank. Jim Casey, who had been co-heading the investment bank with Viswas Raghavan, is also moving on to pursue other opportunities within the firm, leaving Viswas to handle the role alone.
While some of these changes may seem like mere title adjustments, the most significant development is Pinto’s new position alongside Jamie Dimon as an “exceptional partner.” Although Pinto may not be making major strategic decisions, his focus on executing the bank’s priorities across various business lines suggests that he is being prepared for a potential future leadership role within the bank.
In other news, Bloomberg recently interviewed an anonymous junior professional behind the popular Instagram account High Yield Harry, who specializes in public credit. The individual explains why working in private credit may be more appealing than public credit markets. According to High Yield Harry, practitioners of private credit are compensated better, and the job itself is more interesting. Private credit offers the opportunity to structure deals in various ways and provides access to comprehensive data rooms and direct interaction with management teams. However, it is worth noting that private credit jobs can be quite demanding and stressful, as private credit firms often work closely with private equity sponsors who expect swift action and detailed analysis.
High Yield Harry also compares working in private credit to working in banking, highlighting the advantages of private credit. Banking pay has decreased, and individuals are spending long hours in the office, with an average workweek of around 90 hours. In contrast, both public and private credit offer higher compensation packages. High Yield Harry suggests that if deal flow does not increase by 2024, the banking industry may face even greater challenges.
In other industry news, Citi’s recent bonus payouts have been criticized as “straight-up disrespectful” by employees, according to the New York Post. On a more positive note, Blackstone, a leading investment firm, predicts an increase in merger and acquisition activity and emphasizes the importance of acting before valuations rise. The firm also believes that Federal Reserve rate cuts will play a crucial role in the economic recovery. Additionally, a significant number of UK employees are subject to non-compete clauses, according to the Financial Times.
Swatch, a prominent watch manufacturing company, faced criticism during an investor call when the CEO responded to concerns by suggesting that investors could take their money elsewhere if they were dissatisfied with the company. This response was deemed “not very constructive” by Bloomberg. In terms of employment, both Abrdn and Baillie Gifford are cutting jobs in Edinburgh, creating a challenging job market in the city. Furthermore, Bank of Montreal terminated four mining bankers in Toronto due to homophobic bullying on Teams chats, as reported by the Globe and Mail. Lastly, Microsoft is downsizing its video games division, resulting in 1,900 job cuts.
Overall, JPMorgan’s recent restructuring move has caught the attention of the industry. While some changes may appear to be mere title adjustments, the elevation of Daniel Pinto alongside Jamie Dimon suggests a potential succession plan. Additionally, insights from High Yield Harry shed light on the advantages of working in private credit compared to public credit or banking. As the banking industry faces challenges such as decreased pay and long working hours, private credit offers better compensation and more interesting opportunities. The news from Citi’s bonus payouts, Blackstone’s predictions, and various employment developments further contribute to the dynamic landscape of the financial sector.
