Bank One

(ONE) - Get Report

Wednesday set a $2.94 billion charge and slashed its dividend in half as new CEO Jamie Dimon moved to put the troubled bank's house in order.

The Chicago-based bank, which has been plagued in the last year by problems at its

First USA

credit-card unit, reported a second-quarter loss of $1.27 billion, or $1.11 a diluted share, reversing year-ago earnings of $992 million, or 83 cents a share. The latest period included $1.91 billion, or $1.66 a share, in after-tax charges that the bank said would "strengthen the integrity of the balance sheet."

"We are taking strong medicine to build a healthier future," Dimon said in a statement released Wednesday morning. Bank One also said it would hire a new chief financial officer, chief legal officer and head of strategic planning, along with new heads for its middle market banking and commercial banking businesses.