JPMorgan Chase (NYSE: JPM), like Goldman Sachs (NYSE: GS) and other major US banks is well connected. Many of their firm’s alumni reside in positions of power, and that power resides in Washington.
Early last year investors in JPMorgan were worried that beloved CEO Jamie Dimon would be asked to take the Treasury Secretary role. Thankfully for them, that did not happen and the role remains occupied by former New York Fed Chairman Tim Geithner. Although Dimon was safe from the government’s reach, the respected banking institution will be losing a key executive to public service.
President Barack Obama on Thursday said that he chose J.P. Morgan Chase executive William Daley to be his new White House chief of staff, retooling his team with a politically savvy businessman at the helm. President Obama commented “He possesses a deep understanding of how jobs are created and how to grow our economy.”
The Obama administration is at a turning point, with many key staff members leaving in recent months, giving him an opportunity to reshape his team and agenda. Surrounding himself with tenured executives and respected industry leaders could go a long way to restoring confidence, while improving policy outcomes as well.
