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JPMorgan Chase Co. may be looking to double down on its compliance efforts, but it will have to do so with a new leader in its compliance program.
Cindy Armine, JPMorgan’s chief compliance officer since early 2013, has stepped down from her position in the company. According to a company memo, Armine will leave for a position with another company that was not named in the memo.
Under Armine, JPMorgan has faced some of the toughest compliance challenges of any U.S. company. The bank reached a $13 billion settlement with the Department of Justice in November for improprieties during the financial crisis, as well as a $100 million settlement connected to the “London Whale” scandal. As a result, the bank elected to spend $2 billion, double its initial budget, on compliance measures in 2014.
Sources told the Wall Street Journal that company that has hired Armine is First Data Corp., an Atlanta-based payment processor that is now headed by former JPMorgan executive Frank Bisignano. First Data has hired many employees away from JPMorgan during Bisignano’s time at the company, and First Data agreed to pay JPMorgan millions of dollars in January 2014 in exchange for a pledge that JPMorgan would not challenge any new hires.
For now, Armine’s former role will be filled by Lou Rauchenberger, chief administrative officer for the company's corporate and investment bank. The company is looking for a permanent replacement, who will report to Chief Operating Officer Matt Zames.
The new CCO will have plenty of ammunition within the company once hired. Along with the doubled budget, the company will add an additional 3,000 jobs within the compliance team in 2014 after adding 7,000 such jobs in 2014.
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