JPMorgan Shuffles Investment Bank Roles, Elevates Troy Rohrbaugh

(Bloomberg) -- JPMorgan Chase & Co. is shuffling roles within its corporate and investment bank in a shift that streamlines the company’s trading and treasury operations, according to a memo sent to employees.

In the biggest change, the bank elevated bond veteran Troy Rohrbaugh to head of global markets, where he’ll oversee all of fixed-income and equity trading. Rohrbaugh, previously head of macro trading, joined JPMorgan in 2005 and has been critical in decisions to invest in electronic and mobile trading improvements across asset classes.

JPMorgan Shuffles Investment Bank Roles, Elevates Troy Rohrbaugh

The moves come a year after Daniel Pinto, head of the corporate and investment bank, was promoted to share the No. 2 spot at the largest U.S. bank with fellow Co-President Gordon Smith, and are also aimed at freeing up Pinto, a former foreign-exchange trader, to spend more time thinking about strategy, said Brian Marchiony, a spokesman for the firm who confirmed the memo.

“As I spend more time working with Gordon, Jamie and the full operating committee on new opportunities for both our wholesale and consumer businesses, I want to make sure that our CIB businesses and management team are structured most efficiently,” Pinto wrote in the memo.

The bank also reduced the size of its CIB management team to 18 people from 25.

Currencies, Commodities

Responsibility for running trading had been split among several executives who reported to Pinto, with Rohrbaugh in charge of rates, emerging markets, currencies and commodities -- the biggest contributor to JPMorgan’s fixed-income business. Jason Sippel, who leads equity markets, and credit-trading co-heads Matt Cherwin and Guy America will now report to Rohrbaugh instead of Pinto.

While JPMorgan wasn’t immune to the intense volatility that roiled fixed-income trading desks across banks in the fourth quarter, the bank’s Wall Street division was a top-three performer in all major asset classes, including government bonds, currencies, corporate credit and equities in the first half of the year, according to the most recent data from Coalition Development Ltd. Its mergers-and-acquisitions bankers generated $2.5 billion in advisory fees last year, a record.

“Though we are in a position of great strength, staying disciplined and nimble will be critical in this next phase of growth,” Pinto said in the memo.

The bank also revamped its treasury services business, combining teams from the consumer and corporate bank to create a group called wholesale payments that will deal in cash management, payment solutions and merchant services, led by Takis Georgakopoulos. JPMorgan generated $4.7 billion in revenue from treasury services last year, a 13 percent increase, thanks in large part to rising interest rates and an expanding base of operating deposits.

Other changes detailed in the memo:

  • JPMorgan brought its sales and research teams together, promoting Marc Badrichani as head of global sales and research, a new role.
  • Joyce Chang, who rose through the ranks as an analyst covering fixed-income and emerging markets, was named to the new role of chair of research, where she’ll focus on building key investor relationships.

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