JP Morgan Chase names Wilson chief risk officer

JP Morgan Chase today announced that Don Wilson, currently co-head of credit and rate markets, will become the bank’s chief risk officer (CRO) upon the retirement of Marc Shapiro, the bank's current vice chairman and CRO, at the end of September.

The bank also reported a 78% increase in its second-quarter net income – to $1.83 billion – over the year-earlier period on the back of strong trading revenues.

Wilson, whose career accomplishments as one of the prime architects of JP Morgan Chase’s trading operations were recognised by Risk in its Hall of Fame last December, will report to William Harrison, chairman and chief executive officer. In a press release, Harrison described Wilson as “one of our most seasoned and successful risk managers”.

Bill Winters, the bank’s co-head of credit and rate markets, will assume sole responsibility for that business. Dina Dublon, the firm’s chief financial officer, will remain in that role and continue to report to Harrison.

The bank’s formerly sterling reputation for risk management was hurt by its admission last September that its loan portfolio suffered from large, difficult-to-hedge concentrations of telecom, cable and merchant energy exposures, which forced it to make a large loan-loss provision in the third quarter of 2002.

However, the results released today indicate that the firm may have left most of those problems behind. In a press release, the bank said: “Commercial credit costs, non-performing assets and criticized exposures declined significantly from the first quarter of 2003.”

The bank also announced that it has added $100 million to its litigation reserve in anticipation of a settlement with New York State and Federal government officials over its dealings with Enron.