Jamie Dimon
He cut 15,000 jobs his first year at Bank One. Then took JPMorgan from sleepy regional to the largest US bank.
In 2000, Jamie Dimon became chief executive of Bank One, a sprawling regional bank with outdated technology. He cut 15,000 jobs in the first year and closed 400 branches. He consolidated back office operations that five divisions ran. Every redundancy was eliminated. The bank's efficiency ratio dropped from 65 to 52%. By 2004, Bank One was lean enough to merge with JP Morgan Chase without destroying value. Dimon stayed to run the combined entity, while other banks made mortgage-backed securities. Dimon instructed his team to originate mortgages and sell 95%. Only the highest quality 5% stayed in house. JP Morgan's subprime exposure was minimal. When the 2008 financial crisis hit, every other major bank needed bailouts. Citigroup needed 75 billion in TARP funds. AIG needed 182 billion. Washington Mutual collapsed and sold for 1.9 billion. JP Morgan kept its balance sheet clean.
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