* Marianne Lake to replace Doug Braunstein as CFO
* Lake to join operating committee, report to Dimon
* Braunstein to become a vice chairman, focus on clients
By David Henry
Nov 19 JPMorgan Chase & Co named
little-known executive Marianne Lake as its chief financial
officer on Monday, making her one of the most powerful women on
Wall Street and the top ambassador to investors for the largest
Lake, 43, will replace Doug Braunstein as CFO early next
year and join only a handful of other women in top Wall Street
roles, such as Ruth Porat, the chief financial officer of Morgan
Lake will answer directly to CEO Jamie Dimon in her new
role, reestablishing a reporting line taken away from the CFO
post this summer after a massive $6.2 billion trading loss hurt
the company's credibility with securities analysts.
She will also join the bank's powerful operating committee,
which has about a dozen members.
"I hope to be described as a great partner and someone who
helped drive and develop the business," Lake said in a
Braunstein, 51, a long-time investment banker, will become a
vice chairman at JPMorgan and "focus on serving top clients,"
according to an announcement from the company.
His move could mark the last exit from the public spotlight
of JPMorgan executives linked to the trading loss.
Braunstein, like Dimon, had insisted to analysts in April
that press reports were wrong about risks the bank's Chief
Investment Office faced from positions taken by Bruno Iksil, who
was known to hedge funds as the "London Whale" for the size of
his trades in derivatives.
When talk of Braunstein's possible move surfaced last month,
a person familiar with the matter said giving up the CFO post
would be Braunstein's decision and unrelated to the bad credit
The change also comes as Dimon grooms a younger group of
executives at the bank.
In a reshuffle over the summer, Dimon named Michael Cavanagh
and Daniel Pinto - both in their late 40s at the time -
co-chiefs of commercial and investment banking. Both Cavanagh
and Pinto are seen as prime candidates to succeed Dimon, 56,
when he is ready to retire.
Lake was far removed from the derivatives debacle. Though
she has been the CFO for JPMorgan's retail branch systems since
2009, she has had a relatively low profile outside the bank.
She has not been a member of the company's Executive
Committee, whose roughly 50 members are listed in JPMorgan's
annual report and who meet quarterly.
Lake has had some experience in the last five years meeting
with Wall Street securities analysts, whom she will address in
future quarterly conference calls after earnings reports.
In her previous roles, she saw the financial crisis up close
as JPMorgan acquired investment bank Bear Stearns and then as
the U.S. housing crisis battered JPMorgan's mortgage
From 2007-09, she worked in JPMorgan's investment bank as
global controller in finance and business management.
Lake first met Dimon when he came to the bank in 2004.
Dimon, in the company's statement, said Lake "has developed an
impressive breadth of knowledge and experience in finance across
both our wholesale and our consumer businesses."
Lake, a chartered accountant, managed global finance
infrastructure and control functions in JPMorgan's corporate
finance group from 2004 to 2007. Before that, she was a senior
financial officer for the company in the United Kingdom.
She also worked for PriceWaterhouseCoopers in London and
Sydney before joining JPMorgan.
Lake is a citizen of both the United States and the United
Kingdom, having been born to an American mother and a British
Dimon took Braunstein out of his line of direct reports in
July, assigning him to answer first to Matt Zames, a top
mortgage markets executive whom he had just named co-chief
operating officer of the company.
Dimon, in testimony before a congressional committee in
Washington in June, cited Braunstein as being among top
lieutenants whom he had relied upon to check the London Whale
Others he cited were company risk officers. In October,
former Chief Risk Officer Barry Zubrow said that he would retire
at the end of the year. Another person whom Dimon cited was Ina
Drew, who was head of the Chief Investment Office and who left
shortly after the losses surfaced.
Besides the shakeups this year, Dimon shuffled some of his
top executives at least once in each of the three previous
years. He has said that he likes to rotate his top staff through
different positions as part of preparing potential successors.
In June 2011, Dimon replaced retail banking chief Charlie
Scharf, who has since become CEO of Visa Inc.
In June 2010, Dimon named Braunstein to be CFO after
Cavanagh had held the post for six years. Cavanagh was then put
in charge of JPMorgan's Treasury & Securities Services unit
which handles payments and other transactions for corporations
Cavanagh's assignment changed somewhat in this year's July
shuffle when Dimon said the bank would combine the treasury
services business with its investment bank and that Cavanagh
would become co-head of the new unit, with Pinto.
In 2009, Dimon named Jes Staley to take over the investment
bank, replacing its co-chief executives Bill Winters and Steve
Black. At the time, it look like Staley could become a successor
to Dimon, though they are about the same age.
But in July of this year, Staley was moved out of that
executive role to become chairman of the combined corporate and