UPDATE 3-JPMorgan names Black vice chairman

* Black steps down as investment bank executive chairman

* Will focus on advising clients, working with regulators
(Adds comments from Black)

By Elinor Comlay

NEW YORK, Jan 28 (BestGrowthStock) – JPMorgan Chase & Co (JPM.N: )
named Steve Black vice chairman on Thursday and said he would
step down from day-to-day involvement in investment banking.

A long-time JPMorgan executive, Black, 57, had said in
September, after Dimon appointed Jes Staley CEO of the unit,
that he would eventually step back from the investment bank.

Staley replaced Black and William Winters, previously
co-heads of the investment bank. Winters left JPMorgan, while
Black said he would stay on as executive chairman of the
business for a transition period.

“The transition to Jes Staley as CEO of the investment bank
has gone smoothly and quickly, and Steve has said that he would
like to focus more of his time on advising our clients,” Chief
Executive and Chairman Jamie Dimon said in a statement. Dimon
and Black have known each other since they worked at Smith

The transition period had been slated to end later this
year, but Black said in an interview with Reuters that Staley
had got up to speed with the business quickly and it was better
for Black to cede the day-to-day business to him sooner rather
than later.

“Now it’s set up the way it’s supposed to be run,” he

Black said he and Staley had also wanted to get through the
end of 2009 — compensation season for banks — before ending
the transition period. JPMorgan put aside a record $9.3 billion
to pay its investment bank employees for 2009 but its
compensation expense was just 33 percent of revenue, less than
the 45 to 50 percent industry standard of previous years.


Black said he is looking forward to spending time with
clients again.

“I’ve really been tied to my desk the last three years,” he
said. “Now’s a chance to get out and meet clients and I plan on
doing it all over the world,” he added, noting that he just
returned from a one-day client meeting in Brazil.

Black has agreed to stay with the bank for at least three
years, Dimon wrote in an internal memo that was obtained by
Reuters and confirmed by a spokeswoman. Black will report to
Dimon and continue to serve on the bank’s operating committee.
In the new role, Black will also meet with global regulators,
the bank said.

JPMorgan, the second-largest U.S. bank by assets, behind
Bank of America Corp (BAC.N: ), said this month that
fourth-quarter profit (Read more your timing to make a profit.) soared to $3.3 billion, helped in large
part by strong investment banking results. [ID:nN15183524]

The unit topped rankings for equity capital markets in
2009, helped in part by its March 2008 acquisition of Bear

Black and Winters helped to steer JPMorgan’s investment
bank through the financial crisis, when complex debt securities
linked to subprime mortgages caused huge losses for rivals. The
pair were also deeply involved in the Bear Stearns deal.

Winters has yet to resurface at another firm.

(Reporting by Elinor Comlay; Editing by Lisa Von Ahn and Ted
Kerr, Gary Hill)

UPDATE 3-JPMorgan names Black vice chairman