“James Dimon gave up his chairmanship of J.P. Morgan Chase & Co.’s main banking subsidiary after a regulator said it preferred that he no longer hold those duties, said a person familiar with the discussions.
“The move, which happened July 1, didn’t affect Mr. Dimon’s status as chief executive or chairman of J.P. Morgan’s parent company. The suggestion, this person said, came from the Office of the Comptroller of the Currency as a way to improve governance at the bank.
“The OCC is the primary regulator of J.P. Morgan Chase Bank NA, the deposit-taking subsidiary that operates branches in 23 states as well as several other countries.
“The deposit-taking subsidiary once chaired by Mr. Dimon last year had its confidential management rating downgraded from a 2 to a 3 on a scale of 5, a rare score for such a large institution, said people familiar with the move.”
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