JP Morgan Chase’s merger plans revealed

JP Morgan Chase’s (JPMC) plans to absorb Bank One’s global foreign exchange trading business became clear last week, following the completion of the US banks’ merger on July 1, reports RiskNews’ sister publication FX Week .

Although JPMC declined to comment on its integration programme, sources close to the bank said Bank One’s Chicago-based forex trading desks would relocate to JPMC’s offices in New York, with some sales staff staying in the centre.

This means John Anderson, head of foreign exchange and interest rate trading at Bank One in Chicago, takes a new job in New York as global head of currency and metals risk at the newly merged firm. He reports to David Puth, JPMC’s global head of currencies and commodities, who works across the bank’s London and New York offices.

Justin Foley, global head of forex options at Bank One in Chicago, will stay at his current location having turned down a senior role in the merged bank in New York. Foley, who leaves Bank One at the end of August, said he prefers to work in Chicago, and has previously turned down other roles in order to stay in the city.

In London, both the bank’s former foreign exchange heads - European head of forex sales Andy Bowen and head of forex and interest rate derivatives trading Stewart Morton - left the bank during the merger process.

However, recruitment sources in New York and London said the majority of global foreign exchange staff at both banks have kept their jobs.

When the merger was first announced in January, observers expected Bank One forex staff to suffer in the takeover by the much larger JPMC. London was highlighted as the most vulnerable area, where the size differential between the banks was at its greatest.