In a CNBC interview about JPMorgan’s global push last week, CEO Jamie Dimon said that “JP Morgan has always been international. We are in 60 countries. I know there has been a lot of noise about international expansion but I think it’s just that we are pushing it more.”Even as Dimon downplays the move, he has made several high-profile hires and promotions recently. The investment bank has to make up ground after losing its top spot in global equity sale to Morgan Stanley.
The new joint venture, the first approved in six years, will finally allow the firm to underwrite securities in China, but it will still be restricted from other services offered by local and some established international banks such as UBS. For example, it faces a five year wait to be eligible for a brokerage licence under current regulations.
Though right now its restricted to a one-third ownership of the venture, the WSJ said that was likely to increase should regulations change.
Duoguang formerly worked for twelve years ar China International Capital Corp (CICC), the investment bank in which Morgan Stanley had a one-third stake before selling in December.
Despite India's rapid growth, it's not one of the most profitable markets in the region, but it 'is one of the most competitive,' said Morparia, the CEO of J.P. Morgan India, in an October Bloomberg interview, as banks take on 'near-zero fees' for underwriting sales of state assets.
J.P. Morgan reportedly split a one paisa (less than 1 cent) fee with others for underwriting a state deal.
Though Morparia said the company was still making money with higher commission deals in the private sector, it fell from sixth to eight place for rights offerings and equity sales, with Citigroup in first place.
During 2010, the 0.92 percentage rate paid for underwriting stock sales was lower than both the US and Hong Kong's.
Morparia joined J.P. Morgan in 2008 following 33 years at the ICICI Bank, India's second largest bank, and in 2006 was ranked as one of Forbes's 100 Most Powerful Women.
He has been head of M&A at JPMorgan for over five years, and started working at the company in 1997.
In 2010, Bloomberg ranked JPMorgan third in global M&A.
As part of a 'pretty aggressive' expansion plan for 2011, global corporate bank CEO Guyett said in early December that the firm planned to increase its international bankers from 200 to 300 over the following two years.
However, ever since the new global unit meant to expand in developing countries was announced early last year, it was intended to have 300 bankers, so it doesn't signal an extension.
In areas like Asia, Citigroup and HSBC still lead in the corporate banking sector.
However, a new international public-sector group that will report to him was added in August, and the firm tapped a former Treasury Department official to lead it.
As Asia-Pacific Chairman and CEO, Abdelnour is overseeing the region with plans to increase its share from 14% to 20% of the J.P. Morgans' global institutional business.
This year, Abdelnour already got the Chinese joint venture he told Business Week he wanted in a March interview.
Up next could be buying a Chinese bank, which Abdelnour mentioned that JPMorgan would be interested in if China relaxed regulations. Dimon has said that with a 'pretty high likelyhood,' the firm would make an Asian acquisition at a time when 'JP Morgan is doing well, the dollar is doing well, financing costs are low, and maybe Asia's not doing quite as well,' though he didn't give a timeline.
After a mid-2010 senior management shift, the former head of Treasury & Securities Services (TSS) got a new job: President of International, a spot created to grow their international business including their corporate banking.
Miller, named one of the 50 most powerful women in 2008 by Fortune, was also chosen as the chair of the new International Operating Committee.
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