Dimon ally quits JP Morgan to go to Carlyle Group
PRIVATE equity firm Carlyle Group yesterday named as co-president and co-chief operating officer JP Morgan’s Michael Cavanagh, who had been considered a leading contender to succeed the bank’s CEO Jamie Dimon.
Cavanagh is currently co-head of JP Morgan’s corporate and investment bank. His move to Carlyle is a testament to the rise of alternative asset managers, as investment banks come under increased regulatory pressure in the aftermath of the financial crisis.
Cavanagh, 48, is said to have become drained by the huge amount of regulatory work he was tasked to do following the derivatives loss that became known as the London Whale trades.
He has known Dimon for around 20 years. “ Even on the toughest days (and we had plenty of them), I wouldn’t have wanted to be in a foxhole with anyone else,” he said.