JPMorgan Chase Pushes Out Mortgage Head David Lowman

JPMorgan Chase & Co has pushed out its head of home lending, David Lowman, who was sidelined in February after the bank racked up billions of dollars in losses on soured mortgages and became mired in litigation over a wave of foreclosures.

"Dave Lowman and I have decided he will leave the firm," Frank Bisignano, the bank's chief administrative officer, said in a memo that was sent to bank staff on Tuesday.

A copy of the memo was obtained by Reuters.

"He worked here during extraordinary times and has said he will take some much needed time off," the memo said.

Lowman had joined JPMorgan from Citigroup in 2006. During his tenure at JPMorgan, the bank picked up bad mortgage assets through its acquisitions of investment bank Bear Stearns & Co and retail bank Washington Mutual.

JPMorgan Chief Executive Jamie Dimon in February sent Bisignano, a top aide, to the company's retail banking division to fix its struggling mortgage business.

(Reporting by David Henry, editing by Maureen Bavdek)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[flaboater1]

05:05 PM on 06/15/2011

The rest of the C suite at JPMorgan also needs a much needed Time Out...In Rikers Island...

It now to...Do the Crime, Pay the Time instead of Pay the Dime...

[nanimal]

02:38 PM on 06/15/2011

Boy they really jumped on that...they tanked the economy how long ago. I suppose the guy will never see jail time and I know he committed fraud or knew about fraud taking place. Wow he loses his job after how many billions in bonuses he has been recieving since 2008.

[smokeystover39]

10:21 AM on 06/15/2011

"IF" DoJ has any awareness Lowman's ouster could be a gold mine of insider information. First, JPM/Chase cannot silence this guy with any "confidentially" agreement when the government wants to chat. They have too many tools in their arsenal to void such an agreement. Second, JPM/Chase violated the rule of "Keep your friends close, but your (potential) enemies closer." Third, Lowman has every incentive to cooperate with the Feds because there are NO alternative jobs for this guy. (In the interview) "Oh, I see you lost billions for JPM/Chase, how about helping us lose billions too?" Lowman could string out his paid songfest with the Feds for years.

Let''s see if Obama's Dept. of Justice picks up on this potential goldmine before he meets with an unexpected and untimely (natural causes, of course) end.

[BonnieDoon]

03:09 PM on 06/15/2011

I wonder if a grassroots effort would finally push the DOJ to take some meaningful action and prosecute the creators and beneficiaries of Fraudclosure. I hope Lowman doesn't become yet another "missed opportunity".

[Dino MA]

05:41 PM on 06/15/2011

I agree with the Fed's talking to him as you suggest, but I'll also offer this: every other executive and CEO who made stupid bets have landed on their feet. Google the Bear Sterns executives, they're all doing fine.

JP decided to take on Bear's mortgage assets in the deal made with Hank Paulson's help. Jamie Dimon had to sign off on that, now this guy loses his job?? This is exactly what's wrong with Wall Street. If this guy deserved to lose his job, so does Dimon, but what happens instead? Dimon gets a raise on the backs of tax payers and has the b@lls to lecture Ben Bernakie this past week about how they don't need more oversight!!! Really??

It won't stop til there are riots in the streets like in Greece right now!!!

[layla1]

06:59 PM on 06/14/2011

If only he were taking the time off in a nice cozy jail cell. We can only hope.

[landskroon]

05:26 PM on 06/14/2011

When will we find out the real reason? Banksters are used to have more than one truth

[nanimal]

02:40 PM on 06/15/2011

We will find out the truth eventually it may be 10 years from now though. We will be kicking ourselves for not giving these guys life without parole.

[BonnieDoon]

05:09 PM on 06/14/2011

From Citi - somehow not a surprise.

It'll be very interesting to watch the outcome of the State Attorneys General from New York and Delaware dual-track investigations into the securitization of mortgages bundled and sold to investors. Who really owns the note? MERS? Illegal documentation?

Four years into this fraudclosure mess and their just beginning to investigate.

[giwel7]

06:37 PM on 06/14/2011

they will never stop "investigating" but they will never start to prosecute.

[BonnieDoon]

07:11 PM on 06/14/2011

I think there will be some prosecutions that come out of this. They're really delving into whether laws were broken when banks didn't include mandated documents when they created and then sold the MBS to investors. NY AG's don't always give Wall Street a pass.

[Longtimeliberal]

04:51 PM on 06/14/2011

Must have found out how bad it was and how much exposure they have!

[structurequity]

04:07 PM on 06/14/2011

the golden dumping begins for now the heads of making money from money realize they are to be held to a rendering and want to render only what is left not the meat of the business but the offal...

[jtabs]

02:57 PM on 06/14/2011

He arrived in 2006 and Bear and WaMu were kind of pushed on them by the Fed and the Treasury, so it would seem that he is also at least 50% scapegoat although he did arrive from Citi another corrupt losing operation.

[Jack Daniels Esq]

02:49 PM on 06/14/2011

Gonna work for POTUS.FLOTUS @ WH

[nogimmicks]

12:51 PM on 06/14/2011

He looks like an owl that needs a dental. In any case,
the executives come and go, but the bosses-owners stay.

[JoeJo]

06:19 AM on 06/15/2011

...I was surprised to see he was ousted, given the tread on his forehead. He looks rather "grippy."

[blueken]

12:25 PM on 06/14/2011

That should cover the trail.

[giwel7]

12:22 PM on 06/14/2011

no mention of his retirement package in this article?