New JPMorgan COO focuses on cost-cutting

JPMorgan (JPM -1.6%) COO since April 2013, Matt  Zames over the past few months has expanded the bank's cost-cutting focus with measures expected to save hundreds of millions annually (the bank had $70.5B in noninterest expense last year).

The saved money won't necessarily flow to the bottom line, but will be reinvested into areas where JPMorgan in expanding like technology, cybersecurity, and regulatory control.

Outside vendors will feel the squeeze as the bank is examining contracts with thousands of vendors with whom it does business - from the Big Four accounting firms to the guys who cut the grass. Those who comply with requests for cost savings will gain additional business, while those who balk will lose out.

Comments (1)
  • skipmac
    , contributor
    Comments (55) | Send Message
    JPMorgan moved their fiduciary tax dept from Delaware to Chicago. What a disaster. The Bancone personnel couldn't handle the JPMChase tax processing because of the complexity of the accounts. Now they are going to outsource it to PWC. That was a plan back in the late 80's and the Delaware tax dept showed that they could do it much cheaper than PWC. There was a mix of PWC personnel with JPM personnel, but everything was still under the control of JPMChase. When something isn't broke, don't try to fix it.
    8 Jul 2014, 04:20 PM Reply Like
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