No. of Recommendations: 0
"JPMorgan continues to face scrutiny over its history with sex offender Jeffrey Epstein, both before and after his 2008 conviction. Is the Epstein scandal in the rearview mirror for JPMorgan? “I hope so,” says Dimon. “We did business with a terrible guy. Errors in judgment obviously were made. Everyone who was involved feels terrible about it. At least we kicked [Epstein] out in 2013.” It was Callahan Erdoes who informed Epstein that the bank would no longer do business with him.
Jes Staley, formerly JPMorgan’s head of investment banking and a onetime Dimon heir apparent, was Epstein’s primary point of contact at JPMorgan. In 2013, Dimon lost confidence in Staley as a manager and Staley left, people familiar with the matter said.
Dimon and others at JPMorgan Chase lay the blame for the bank’s relationship with Epstein at the feet of Staley. Ultimately, though, the institution writ large is culpable. Epstein did some business with other lenders and was a client of Deutsche Bank after JPMorgan showed him the door. But JPMorgan was Epstein’s primary bank, enabling him for years.
Epstein isn’t likely an existential threat to the bank. Shareholders have bigger concerns, starting with the worry No. 1, which is how long will Dimon stay and who will succeed him. Guessing on both counts has become a Wall Street parlor game.
Any number of successors (aside from Staley), including Michael Cavanagh, Charlie Scharf, and Bill Winters, have come and gone, or in the case of Chief Operating Officer Jennifer Piepszak, have taken themselves out of the running. Besides Lake, the current contenders are likely Rohrbaugh and Petno. Is the next CEO currently working at the bank?"
https://www.barrons.com/articles/jpmorgan-chase-ja... 