JPMorgan just handed its CFO a new role; Goldman Sachs sees a major growth area in cemeteries

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JPMorgan just handed its CFO a new role, and it could be a sign she’s a candidate to replace Jamie Dimon

JPMorgan shuffled management on Wednesday, taking the chief financial officer and placing her in charge of an expanded consumer lending business and taking the head of cards and making her CFO.

The bank said Marianne Lake, the CFO, would now be in charge of credit cards, autos, and mortgage lending. She’ll report to the consumer banking chief and copresident Gordon Smith, according to a statement. While Lake won’t be reporting to Jamie Dimon anymore, she will be getting on-the-ground experience running a business that is usually required to become CEO.


Goldman Sachs sees a major growth area in the ‘huge pool of money’ held by cemeteries as it looks to grow a $US35 billion business

Goldman Sachs, which has long managed money for the country’s wealthiest people and companies, is looking further afield for new clients.

The firm started a business called Institutional Client Solutions in the consumer and investment management division in 2009 to manage money for nonprofit groups too small to do it themselves. The platform manages $US35 billion on behalf of more than 500 endowments and foundations. These clients often include the groups that Goldman’s wealthy individual clients run, donate to, or otherwise advise: ballets, hospitals, and local nonprofits, among others.

The firm’s head of private wealth management in the Americas, John Mallory, said Goldman had started thinking even more creatively about potential ICS clients, which could include Native American reservations and cemeteries, to broaden its reach. The expansion comes as CEO David Solomon targets wealth management as a major growth area.


Citigroup is reevaluating its policy on testing job applicants for marijuana use as Wall Street banks weigh whether to work with the $US75 billion cannabis industry

In a sign of the changing times, Citigroup is reevaluating its policy on screening job applicants for marijuana use as Wall Street banks weigh whether to work with the industry, a representative confirmed to Business Insider.

The person pointed to the changing social climate around marijuana legalization as the reason. Thirty-three states now have laws allowing some form of legal access to marijuana.

The New York City Council passed a bill last week that would bar employers in the city from forcing job applicants – outside “safety-sensitive” industries like law enforcement and construction – to take drug tests for marijuana use.


BlackRock says its Aladdin Wealth unit is helping it ‘be part of the infrastructure,’ and it could drive even more money to the world’s largest asset manager

Individual investors are so impressed by BlackRock’s risk-evaluation technology that they’re moving their money to the financial advisers who use it, the firm’s executives said on Tuesday’s earnings call.

BlackRock has been selling Aladdin, its signature investment management platform, to institutional investors, insurance companies, and other asset owners for 20 years. It’s a bright spot for the world’s largest asset manager, driving revenue within technology up 11% year-on-year, according to first-quarter earnings.

In recent years, the firm broadened the platform to wealth-management companies so that financial advisers, private bankers, and other personal money managers could model portfolio risk for their clients. The first such client started using Aladdin Wealth two years ago.


Bank of America’s equities-trading profits cratered, and its explanation may have revealed how much of a killing it made on a monster trade last year

Bank of America’s equities division saw first-quarter revenue fall 22% compared with last year.

That’s in part because of a monster trade the bank did in 2018 that boosted the unit’s baseline.

Insiders said the trade in question was most likely a complex derivative deal that helped a Chinese billionaire snag a $US9 billion stake in the German automaker Daimler.

The “collar trade” brought in about $US160 million in the first quarter of 2018, based on the figures quoted by bank executives on Tuesday, but the total could have been much higher.


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