Bischoff will replace Tom Hoppe in January 2015 if approved by the board, according to a memo from Daniel Pinto, 51, head of the global corporate and investment bank and chief executive officer of Europe, Middle East and Africa. The 73 year-old will first serve as a director as well as an independent adviser of the London branch’s oversight committee.
The decision to appoint Bischoff comes at a time when British regulators are seeking to restore confidence in a industry that has been hit by a series of scandals ranging from rigging benchmark interest rates to foreign exchange. JPMorgan agreed to accords valued at $23 billion in 2013 to resolve probes into mortgage-bond sales, claims it failed to stop Bernard Madoff’s Ponzi scheme and faulty oversight of a U.K.- based trader known as the London Whale.
“The non-executive directors of JPMorgan Securities are central to our firm’s international governance, providing an independent perspective and input to the overall way we run our business,” Pinto said in the memo.
Bischoff is chairman of the U.K.’s Financial Reporting Council after having served at Lloyds Banking Group Plc (LLOY) from 2009 to 2014 in the same role. He previously helped steer Citigroup Inc. through the financial crisis as chairman.
Richard Parsons replaced Bischoff as chairman of Citigroup in 2009 after the bank became the biggest recipient of U.S. bailout funds. The U.S. government invested $20 billion, on top of previous $25 billion, and guaranteed $306 billion of troubled assets to avert a collapse following the global turmoil.
Bischoff’s experience as chairman of the financial reporting council, an independent industry regulator, will be applied to his roles serving on JPMorgan’s EMEA Governance Review Committee and EMEA Audit and Compliance Committee, according to the memo. JPMorgan in May also named former Italian Finance Minister Vittorio Grilli as chairman of its corporate and investment bank in the region.
Royal Bank of Scotland Group Plc, the recipient of the world’s largest banking bailout, last year hired Jon Pain as its head of conduct and regulatory affairs. He had previously led the Financial Services Authority’s efforts at recapitalizing Britain’s banks in the wake of the financial crisis.
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