In the world of sports, some top coaches spawn family trees - with their disciples becoming prolific themselves. In the NFL, Bill Parcells alone has had 14 assistant coaches become head coaches, winning over 630 games combined.
A similar dynamic has played out in high finance. In the hedge fund space, Tiger Management (founded by Julian Robertson) has had at least 10 alumni create some of the biggest and top performing funds, often referred to as the “Tiger Cubs.”
And in the world of banking, JPMorgan’s CEO Jamie Dimon has emerged as the king-maker. With the recent appointment of Charlie Scharff as CEO at Wells Fargo, former JPMorgan executives now lead banks with assets totaling $4.7tn ($7.4tn if you include JPMorgan itself).
Dimon’s disciples now run Barclays, Standard Chartered, and PNC financial (quietly the 8th largest bank in America). They also hold top spots at First Data, Cerberus, and Visa, among others.
Clearly, Mr. Dimon’s ability to identify, train, and manage top talent is noteworthy. But there may be a downside to “family trees” – namely, some resistance to new blood and new ways of thinking. Would the big banks be better served by outside talent, in the face of evolving technology and changing demands from customers?
Regardless, there is clearly a lot of love in the Dimon family!
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The Dimon Diaspora
The $5tn diaspora: Dimon’s lieutenants take top roles - With Charlie Scharff taking on the CEO job at Wells Fargo, former JPMorgan executives now lead banks with assets totaling $4.7tn - $7.4tn if you inclue JPMorgan itself. Read more
CFTC chair says ETH is a commodity - CFTC chair Heath Tarbert believes ETH, like Bitcoin, falls under the oversight of the CFTC as not a security. As a result, he expects allow derivatives to be traded on the U.S. market in the near future. Read more
Visa, eBay, Stripe, and Mastercard drop out of Facebook's Libra - In the wake of the regulatory backlash and as follow up to PayPal's exit last week, a new set of payment incumbents and startups have decided to leave the Libra Association - a group that initially included 27 members. Read more
Robinhood revives checking account - Zero fee stock trading app Robinhood is launching Cash Management, a new feature that earns users 2.05% APR interest on uninvested money in their account with the ability to spend it through a special Mastercard debit card. Read more
Affirm debuts new app with one-use virtual cards - With half of US customers wanting to use installment loans for purchases under $250, the POS financing company wants customers to start their shopping journey with its app in a move to boost volume and compete against Amazon. Read more
Barclays ends UK Post Office cash withdrawal support - Barclays has been slammed by regulators and consumer groups for opting out of a deal that lets customers withdraw cash at UK Post Offices - with the move expected to disproportionally hurt those who rely on cash or who live in rural areas. Read more
Citi bids to woo younger Asian consumers through co-branded card deal with Lazada - Citi hopes to grow its consumer banking customer base in the region by 2m cardholders over the next few years and is using the partnership with the South East Asian e-commerce giant to help achieve that goal. Read more
Tiny $217 options trade on Bitcoin blockchain could be Wall Street’s death knell - Emmanuel Goh, CEO of London-based firm skew., a startup specializing in analytical tools for the crypto industry, has successfully used the bitcoin blockchain to trade and settle S&P 500 options without a middleman. Read more
Chime nearing new funding round at $5bn valuation - Bloomberg reports that the digital first bank with more than 5m customers is close to closing a round with DST Global at a valuation north of $5bn. Read more
Jones - New York-based startup that automates insurance compliance for property managers raised $4.6 million in Series Seed funding led by Hetz Ventures. Read more
Juno - India based neo-bank built on top of Ethereum protocols has secured $3m of Series Seed capital from Polychain, Sequoia, Dragofly, and ConsenSys Labs. Read more
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FinTech Collective Newsletter
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