JPMorgan’s investment bank was the stronger part of the bank, and the consumer bank, Chase, suffered during the financial crisis. Now, the situation has reversed to such an extent that Goldman Sachs thinks JPMorgan should spin off its investment bank segment and focus on Chase, according to the New York Times.
Gordon Smith, head of the consumer bank and favorite to succeed CEO Jamie Dimon if needed, sounded optimistic, particularly about the potential of mobile for the bank and consumer lending. Daniel Pinto, head of the investment bank, discussed necessary cutbacks. CEO Jamie Dimon said to investors, after Pinto’s presentation, “I tell Daniel and all the guys, all the folks from the investment bank, it’s really weird to feel sorry for the investment bank, isn’t it? You have to confess.”