JPMorgan Chase & Co. (NYSE:JPM) promoted Marianne Lake as chief financial officer (CFO) of the company. She will succeed Doug Braunstein, who will ascend as vice chairman of the bank in the first quarter of 2013. Lake is currently serving as CFO of the Consumer & Community Banking business unit of JPMorgan Chase.
Lake served as global controller of the company’s Investment Bank from 2007 to 2009, before becoming CFO of the JPMorgan Chase’s Consumer & Community Banking unit, which is one the largest financial services businesses in the country. Prior to that, she was part of the bank’s Corporate Finance Group that was responsible for managing global finance infrastructure & controls function from 2004 to 2007. She joined JPMorgan Chase & Co. (NYSE:JPM) in the United Kingdom as senior financial officer before 2004. Lake began her career as a chartered accountant at PriceWaterhouse Coopers.
Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM) said, Lake is an outstanding person for the position. Dimon said, “She has developed an impressive breadth of knowledge and experience in finance across both our wholesale and our consumer businesses — in the United States and around the world.”
Dimon also expressed his appreciation to Braunstein and noted his dedication and hard work in accomplishing his responsibilities as the current CFO of the bank. He is confident that he will be able to strengthen JPMorgan’s Corporate & Investment Bank in his new position as vice chairman.
He said, “Doug is a highly experienced and respected banker and an exceptional client-facing executive, who in this new role will work alongside our investment bankers to further strengthen the capabilities of our world-class Corporate & Investment Bank.”
In 2008, Braunstein served as head of JPMorgan Chase’s Investment Banking Americas before becoming CFO of the company in June 2010. He was the head of the company’s Investment Banking Coverage and M&A and held several other senior investment banking positions in the company.
Meanwhile, JPMorgan Chase & Co. (NYSE:JPM) agreed to pay $296.9 million to settle a complaint filed by the Securities and Exchange Commission in connection with the incorrect disclosure of information on certain residential mortgage-backed securities (RMBS) offerings issued by Bear Stearns and one issued by J.P. Morgan.
The SEC alleged that JPMorgan Chase & Co. (NYSE:JPM) “made materially false and misleading statements” related to its $1.8 billion RMBS offerings, collateralized by sub-prime mortgage loans in 2006. In addition, Bear Sterns failed to disclose its settlement practices with mortgage loan originators on problematic loans, sold to the RMBS trusts, worth around $137.8 million.
JPMorgan Chase & Co. (NYSE:JPM)’s $296.9 million settlement includes $50.5 million in disgorgement and prejudgment interest, $24 million penalty for the delinquency misstatements and $60.35 million penalty for its misconduct on bulk settlement practices, which will be distributed to investors affected by the transaction. The settlement also includes a payment of $162,065,536 in disgorgement and prejudgment interest. The bank settled the complaint without admitting or denying it.