JPMorgan Chase & Co (NYSE:JPM) announced its intention to induct former Chairman and CEO of GE Capital Michael A. Neal as a director.
The bank has also expressed its intention to induct its former employee Linda Bammann to its board.
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Neal is former CEO of GE Capital
Michael A. Neal, is currently a Vice Chairman of General Electric Company. Earlier he served as Chairman and CEO of GE Capital till June this year. Neal is expected to join JPMorgan Chase & Co (NYSE:JPM)’s board after he retires from his present position from GE.
Neal joined GE in 1979 and moved to GE Capital eight years later. He held various senior positions in GE Capital including President and Chief Operating Officer of GE Capital and CEO of GE Commercial Finance before taking up the role of Chairman and CEO of GE Capital in 2007.
Bammann is a former JPMorgan employee
Linda Bammann has vast experience in senior risk management roles. She acted as Chief Risk Management Officer at Bank One Corporation from 2001 till it was acquired by JPMorgan Chase & Co (NYSE:JPM). She also held the position of Deputy Head of Risk Management at JPMorgan before her retirement in 2005.
Bammann also served as a Director of Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) from late 2008, after the mortgage giant entered into conservatorship. Until July of this year, she served as the Chair of the board’s Business and Risk Committee.
London Whale episode
Bammann’s vast experience in risk management and her induction into JPMorgan Chase & Co (NYSE:JPM)’s board could be to strengthen the bank’s risk management oversight after the London Whale episode.
Earlier David Cote and Ms Ellen Futter, members of the bank’s risk committee, were buffeted by criticism in the wake of trading losses of more than $6 billion last year, according to JPMorgan Chase & Co (NYSE:JPM)’s chief investment office in London. As noted in The New York Times, some investors said that the board’s risk committee lacked the financial prowess to safeguard against the kind of trading losses that hit the nation’s largest bank.
Emphasizing the risk management and financial services experience of the two new members, JPMorgan CEO James Dimon indicated, “Linda and Mike are proven leaders and will bring outstanding risk, finance and management experience to our Board and to our firm.”
While announcing the induction of two new directors, the bank also announced additional enhancements to its Corporate Governance Principles, including the establishment of a Lead Independent Director role.