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
"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
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
The bank still faces continuing investigations of the
debacle by other authorities in the United States and United