Share prices of US investment bank JPMorgan Chase dropped slightly at the end of the week last week following news that its CEO, Jamie Dimon, would need to undergo emergency heart surgery. The new brought into question the company's succession plan and the uncertainty over its push into China.
On Friday, JPMorgan Chase's shares dropped by more than 5 percent over the news regarding Dimon's health. The executive, who has been pivotal in the company's continued success, will reportedly need to go under the knife to repair an acute aortic dissection, which is essentially a tear in his aorta.
Dimon reportedly went ahead with the surgery, with the procedure going smoothly as expected. Reports citing sources with knowledge of the operation stated that Dimon is currently recovering well. During Dimon's absence, JPMorgan Chase co-president and CEOs Gordon Smith and Daniel Pinto will be taking over as heads of the world's sixth-largest bank.
The emergency operation and the handing down of power to his lieutenants bring into question Dimon's previously announced "full force" push into the Chinese market. His relationships with major players in China are seen a pivotal in the company's plans this year, which includes the taking over of its Chinese joint ventures.
Apart from JPMorgan, other foreign banks such as Goldman Sachs and Nomura Holdings are taking advantage of China's opening up measures to take control of their respective joint ventures. According to Bloomberg, China's opening up of its $45 trillion financial industry will present foreign players with a massive opportunity to earn an estimated $9 billion in annual commercial and investment banking profits.
The former CEO of a securities venture in China JPMorgan, Bei Douguang, stated that Dimon is a symbolic figure in the banking industry in China. No one else in the country's financial circles is as highly regarded. Last year, under Dimon's leadership, JPMorgan was able to become the first US bank to take major ownership of its Chinese securities joint venture. The bank intends to also take full control of its future and fund management units in China; a plan that may be put on hold or delayed given Dimon's condition.
If Dimon is unable to return as the company's CEO, it will likely be a significant loss for the US bank. However, sources with knowledge of the bank's operations have revealed that JPMorgan will likely push forward with Dimon's initial plans, including its push into the Chinese market.
