NEW YORK (TheStreet) -- JPMorgan Chase (JPM) Chairman and CEO Jamie Dimon has given up his title of chairman of the company's main banking subsidiary, according to a filing with regulators made public on Thursday.
Dimon is listed as chairman emeritus of JPMorgan Chase Bank N.A. in the public portion of the "living will" submitted to the Federal Reserve and the Federal Deposit Insurance Corp. Living wills describe how the banks are to be wound down in the event of a crisis.
According to a Reuters report, Dimon gave up the role to comply with a new internal policy on holding multiple roles.
Under the new policy, the holding company's chairman also should not serve as chairman of the subsidiary.Dimon relinquished his title to board member William Weldon on July 1, according to the report, which citing a bank spokesperson. Dimon's dual role as chairman and CEO of the bank came under scrutiny earlier this year, with shareholder activists demanding that the bank appoint an independent chairman to its board. Still, shareholders voted in favor of Dimon keeping both his roles. Since then the bank has taken steps to boost its corporate governance, including shaking up its board. The bank, however, is facing multiple legal challenges. Last month, it paid $920 million to settle charges of inadequate controls after its London office racked up more than $6 billion in losses from derivative trades. JPMorgan is now in talks with the Department of Justice and other regulators to settle charges related to mortgage-backed securities sold in the run-up to the bust. Reports suggest that the settlement could be as high as $11 billion, with the DOJ also looking to extract an admission of wrongdoing. Some critics are beginning to question whether Dimon should continue as CEO if the bank winds up paying the record fine, though supporters argue that the bank has managed to deliver strong returns to shareholders despite its legal woes. Shares of JPMorgan were up 0.5% at $52.20 early Friday. -- Written by Shanthi Bharatwaj in New York. >Contact by Email. Follow @shavenk
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