Jan 23 JPMorgan Chase & Co has named a new head of compliance and shifted reporting lines for control officers as it sharpens its focus on regulatory obligations amid multiple government investigations.
Cindy Armine, co-chief control officer, will replace Martha Gallo, who has been chief compliance officer for the past two years, according to an internal announcement to employees on Wednesday. Gallo, who has been with the bank for more than 30 years, is considering taking another senior job at the bank, according to the memo.
Shannon Warren, the other co-chief control officer, will now have that role solely. Christine Larsen, who had been involved with an operational performance drive, will now be responsible for management of the company's most significant regulatory matters, the memo said.
The bank is shifting responsibility for its compliance functions from its legal group to its two co-chief operating officers, Frank Bisignano and Matt Zames. The moves will place compliance, oversight and control functions under the same management.
"The compliance function is a critical component of how we manage risk across our firm," the memo said. It said the moves were "consistent with our increased focus on meeting our regulatory obligations."
JPMorgan found flaws in its risk management systems last year after losing $6.2 billion in derivatives positions known in the market as the "London Whale" trades for their size.
CEO Jamie Dimon has apologized for the debacle and last week the bank agreed to orders from the U.S. Federal Reserve and Comptroller of the Currency that it improve its risk management and oversight.
The bank still faces continuing investigations of the debacle by other authorities in the United States and United Kingdom.