JPMorgan Chase, whose influence with lawmakers and regulators was damaged by its $US6.2 billion derivatives loss last year, has hired Tim Ryan, the head of Wall Street's biggest trade group, as global head of regulatory strategy and policy.
Ryan, who helped manage the US savings and loan crisis in the 1980s and was director of the Office of Thrift Supervision, has been chief executive of the Securities Industry and Financial Markets Association since 2008.
He previously worked at JP Morgan for 19 years, rising to vice chairman of investment banking for financial institutions and government agencies before joining SIFMA.
He rejoins the biggest US bank when new capital requirements, laws and regulations aimed at restricting risk are constraining many of the most profitable trading and lending activities at large banks. JPMorgan Chief Executive Jamie Dimon had been a loud voice in Washington seeking to moderate many of the restrictions, until disclosure of the "London Whale" loss last year.
Ryan, who is 67, will absorb many of the functions of Barry Zubrow, who has run corporate and regulatory affairs at JPMorgan since last January. Zubrow, who retired at the end of 2012, had been in charge of risk management when the bank's chief investment office in London was building the "London Whale" credit derivatives position.
In Ryan's new role, he will oversee executives who manage regulatory policy, as well as those who manage the bank's client relationships with the Federal National Mortgage Association and other government-sponsored enterprises and government agencies, a spokesman said.
Blythe Masters, who is head of commodities and was assigned by Dimon late last year to coordinate regulatory affairs for the commercial and investment banking divisions as well, will continue in both roles, the spokesman said.
At SIFMA, Ryan earned $US3 million in total compensation and benefits in the fiscal year ending October 2011, the most recent year for which the trade group made filings with the Internal Revenue Service. The JPMorgan spokesman declined to comment on his new compensation package.
Ken Bentsen, SIFMA's executive vice president for public policy and advocacy, will serve as interim CEO after Ryan leaves in mid-February and is a leading candidate to replace him permanently, a spokesman at the trade group said.