JPMorgan loses potential Dimon successor

Departure

JPMorgan’s Mike Cavanagh, who served as a close deputy to CEO Jamie Dimon for more than two decades, will leave to become co-chief operating officer of Carlyle Group.

Bloomberg reports that Cavanagh, 48, was seen internally as a potential successor to Dimon, 58, who has told people he wants to remain CEO for another five years, a person with direct knowledge of the matter said, asking not to be identified discussing personnel.

'The regulatory landscape definitely makes it less enticing for some of these great managers to stay at the big banks, and the talent drain will continue', said Glenn Schorr, an analyst at International Strategy & Investment Group. 'It’s a significant loss for JPMorgan and a huge win for Carlyle, no two ways about it'.

Uncertainty about when the CEO job would become available also may have contributed to Cavanagh’s decision, Matt Burnell, a Wells Fargo analyst, wrote in a note to investors.

Cavanagh held roles including chief financial officer before being named co-head of JPMorgan’s corporate and investment bank with Daniel Pinto, 51, who becomes sole CEO of the unit effective immediately, the firm said today in a statement. Cavanagh was tapped by Dimon in 2012 to lead an internal review into the so-called London Whale trading loss in the chief investment office.

To access the complete Bloomberg article hit the link below:

JPMorgan Loses Potential Successor to Dimon as Cavanagh Quits

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