Bill Demchak

Last updated

William Stanton Demchak (born August 24, 1962) is a business executive in the finance industry as the current chief executive officer of PNC Financial Services. He is credited with being one of the earliest adopters of the credit default swap, especially the creation of markets around them, which due to the role they would play in the Financial crisis of 2007–2008 earned him the title "prince of darkness" within the industry. [1]

Contents

Early life

Demchak has a Bachelor of Science from Allegheny College and an MBA (with an emphasis in accounting) from the University of Michigan. [2] At Allegheny, he was an Alden Scholar, actively participating in student government, the economics club, the Interfraternity Council, intramural sports, and Lacrosse. In addition, he was a member of the Phi Delta Theta fraternity as well as the Phi Beta Kappa Honor Society. [3]

Career

Before PNC, Demchak held a variety of key executive positions at JP Morgan Chase. This includes: Global Head of Structured Finance and Credit Portfolio, involved in strategic agenda (before the JP Morgan-Chase Manhattan merger), member of the board of directors. He says JPMorgan Chase “wasn’t a terribly enjoyable place to work.” [4] He was also a director of Hilliard Lyons Research Advisors.

Demchak is often credited with being the first major adopter of the credit default swap and conceiving the idea of bundling them together and selling them to investors, which is accredited with being one of the main factors in the Financial crisis of 2007–2008. Within the industry, Demchak has earned the nickname "prince of darkness". [5] [6]

In 2002, Demchak first joined PNC as chief financial officer. At that time he worked alongside the then CEO, Jim Rohr. Three years later, he was promoted to head of the company’s Corporate & Institutional Banking, in charge of PNC's middle market and large corporate businesses, capital markets, real estate finance, equity management and leasing. In 2009, Demchak became Senior Vice Chairman and shortly thereafter head of PNC Businesses.

William S. Demchak was elected president in April 2012, then chief executive officer in April 2013 and finally chairman in April 2014. In this capacity he is responsible for all of PNC’s businesses, including corporate and institutional banking, retail banking, mortgage banking and the Asset Management Group. [7]

His total calculated compensation for the 2014 fiscal year was $11,337,904. [8]

In 2009, Financial Times reporter Gillian Tett named Demchak as head of the team at JP Morgan whose financial innovations later played a role in the 2008 crash. Tett described how the team developed new securitization techniques for "turbocharging the market". In particular, the team realised that SPV (special purpose vehicles) would not have to be fully funded. When the concept was taken up by less cautious banks, it would create "consequences that are currently rocking the planet." [9]

Personal life

Demchak was born and raised and still today, lives in Pittsburgh. He says there is "nowhere else I’d want to raise my family." He is married to Debbie and they have three children together. [10]

He formerly sat on the Regulatory Management Committee of The Financial Services Roundtable, the Supervisory Board of The Clearing House, the Allegheny Conference on Community Development, Extra Mile Education Foundation, Pittsburgh Cultural Trust, the World Affairs Council of Pittsburgh, YMCA of Pittsburgh [11] and the Greater Pittsburgh Council of the Boy Scouts of America, the latter of which he in the past, held the role of chairman.

Philosophy

According to Demchak, one key ingredient to becoming a successful leader is to believe you can always be better. He advises potential leaders to: “learn from your failures, surround yourself with people who will challenge you. Ensure your vision is shared ‘clearly and often’ with your team. Remain grounded in your values so that you never forget who you serve or why you come to work.”

Of this specific work he has done and continues to do at PNC he says: “Unlike every bank in our position in history we’re not going to jump into capital markets.” [12]

Related Research Articles

Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by underwriting or acting as the client's agent in the issuance of debt or equity securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, FICC services or research. Most investment banks maintain prime brokerage and asset management departments in conjunction with their investment research businesses. As an industry, it is broken up into the Bulge Bracket, Middle Market, and boutique market.

<span class="mw-page-title-main">JPMorgan Chase</span> American multinational financial services firm

JPMorgan Chase & Co. is an American multinational financial services firm headquartered in New York City and incorporated in Delaware. It is the largest bank in the United States and the world's largest bank by market capitalization. As the largest of Big Four banks, the firm is considered systemically important by the Financial Stability Board. Its size and scale has often led to enhanced regulatory oversight as well as the maintenance of an internal "Fortress Balance Sheet" of capital reserves. The firm is headquartered at 383 Madison Avenue in Midtown Manhattan and is set to move into the under-construction JPMorgan Chase Building in 2025.

<span class="mw-page-title-main">Canadian Imperial Bank of Commerce</span> Canadian banking institution

The Canadian Imperial Bank of Commerce is a Canadian multinational banking and financial services corporation headquartered at CIBC Square in the Financial District of Toronto, Ontario. The Canadian Imperial Bank of Commerce was formed through the 1961 merger of the Canadian Bank of Commerce and the Imperial Bank of Canada, in the largest merger between chartered banks in Canadian history. It is one of two "Big Five" banks founded in Toronto, the other being the Toronto-Dominion Bank.

<span class="mw-page-title-main">HSBC</span> British multinational bank group

HSBC is a British universal bank and financial services group headquartered in London, England, with unique historical and business links to East Asia and a highly multinational footprint. It is the largest Europe-based bank by total assets, ahead of BNP Paribas, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 trillion in assets under custody (AUC) and $4.9 trillion in assets under administration (AUA).

<span class="mw-page-title-main">Bank of America</span> American multinational banking and financial services corporation

The Bank of America Corporation is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina, with investment banking and auxiliary headquarters in Manhattan. The bank was founded in San Francisco, California. It is the second-largest banking institution in the United States, after JPMorgan Chase, and the second-largest bank in the world by market capitalization. Bank of America is one of the Big Four banking institutions of the United States. It serves approximately 10.73% of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup, and Wells Fargo. Its primary financial services revolve around commercial banking, wealth management, and investment banking.

<span class="mw-page-title-main">Chase Bank</span> National bank headquartered in New York City

JPMorgan Chase Bank, N.A., doing business as Chase, is an American national bank headquartered in New York City, that constitutes the consumer and commercial banking subsidiary of the U.S. multinational banking and financial services holding company, JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000. Chase Manhattan Bank was formed by the merger of the Chase National Bank and the Manhattan Company in 1955. The bank merged with Chemical Bank New York in 1996 and later merged with Bank One Corporation in 2004 and in 2008 acquired the deposits and most assets of Washington Mutual.

Richard Marco Kovacevich is an American business executive and the former CEO of Wells Fargo & Company.

<span class="mw-page-title-main">Jamie Dimon</span> American billionaire business executive and banker (born 1956)

James Dimon is an American billionaire business executive and banker, who has been the chairman and chief executive officer of JPMorgan Chase since 2005. Dimon was previously on the board of directors of the Federal Reserve Bank of New York. Dimon was included in Time magazine's 2006, 2008, 2009, and 2011 lists of the world's 100 most influential people. Forbes estimated his net worth at $1.6 billion as of June 2023.

<span class="mw-page-title-main">PNC Financial Services</span> Major bank based in Pittsburgh

The PNC Financial Services Group, Inc. is an American bank holding company and financial services corporation based in Pittsburgh, Pennsylvania. Its banking subsidiary, PNC Bank, operates in 27 states and the District of Columbia, with 2,629 branches and 9,523 ATMs. PNC Bank is on the list of largest banks in the United States by assets and is one of the largest banks by number of branches, deposits, and number of ATMs.

<span class="mw-page-title-main">BBVA USA</span> Former American bank holding company

BBVA USA was a bank headquartered in Birmingham, Alabama. It was a subsidiary of Banco Bilbao Vizcaya Argentaria from 2007 until 2021, when it was acquired by PNC Financial Services. It operated mainly in Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas. The bank was earlier named Central Bank and Trust Company, Central Bank, Central Bancshares of the South, and Compass Bancshares.

<span class="mw-page-title-main">KeyBank</span> American regional bank headquartered in Cleveland, Ohio

KeyBank, the primary subsidiary of KeyCorp, is an American regional bank headquartered in Cleveland, Ohio, and is the only major bank based in Cleveland. KeyBank is one of the largest banks in the United States.

James E. Rohr is former Chairman of PNC Financial Services Group and former CEO. Rohr served as CEO from May 2000 to April 2013 and as Chairman from May 2001 to April 2014, both times taking over for Tom O'Brien. He was the chairman of the Carnegie Mellon University Board of Trustees until the start of the 2021 Academic year.

<span class="mw-page-title-main">Citibank India</span> Indian private sector bank headquartered in Mumbai, Maharashtra

Citibank India is a foreign bank in India with a full service onshore platform. Its Indian headquarters is at Bandra Kurla Complex, Mumbai, Maharashtra. It is a subsidiary of Citigroup, a multinational financial services corporation headquartered in New York City, United States. Citibank India's services are investment banking, advisory and transaction services, capital markets, risk management, retail banking, and Cards. Although headquartered in Mumbai, the bank has most of its workforce based out of Chennai followed by Mumbai and Gurugram.

<span class="mw-page-title-main">Ulrich Körner</span> German-Swiss business person (born 1962)

Ulrich Körner is a German-Swiss business person. In March 2021, he was named CEO Asset Management of Credit Suisse until July 2022, when he was appointed CEO of Credit Suisse AG.

<span class="mw-page-title-main">Blythe Masters</span> British economist (born 1969)

Blythe Masters is a British Private Equity executive and former financial services and fintech executive. She is a former executive at JPMorgan Chase, where she was widely credited for developing the credit default swap as a financial instrument. She is founding partner of FinTech private equity firm, Motive Partners, CEO of Motive Capital Corp, an Advisory Board Member of the US Chamber of Digital Commerce, a Board Member of GCM Grosvenor, Forge Global, CAIS Group, and Credit Suisse Group.

<span class="mw-page-title-main">Sergio Ermotti</span> Swiss banker

Sergio Pietro Ermotti is a Swiss manager and investment banker. In April 2021, Ermotti was elected Chairman of Swiss Re, one of the world's largest reinsurance companies, succeeding Walter Kielholz. He was the Group Chief Executive Officer (CEO) of UBS Group AG from November 2011 to October 2020.

<span class="mw-page-title-main">Simon Cooper (banker)</span>

Simon Cooper is a British banker. Since 2018 he has been the chief executive officer of the Corporate, Commercial and Institutional Banking division of Standard Chartered, its largest global business with approximately USD10 billion in underlying operating income. He also serves as CEO of the bank’s Europe and Americas region and is chairman of the group’s global Diversity and Inclusion Council.

In April and May 2012, large trading losses occurred at JPMorgan's Chief Investment Office, based on transactions booked through its London branch. The unit was run by Chief Investment Officer Ina Drew, who later stepped down. A series of derivative transactions involving credit default swaps (CDS) were entered, reportedly as part of the bank's "hedging" strategy. Trader Bruno Iksil, nicknamed the London Whale, accumulated outsized CDS positions in the market. An estimated trading loss of $2 billion was announced. However, the loss amounted to more than $6 billion for JPMorgan Chase.

Ross Maxwell McEwan is a New Zealand banker, and the chief executive officer (CEO) and managing director of National Australia Bank.

William Thomas Winters, CBE is an American banker who is the chief executive (CEO) of Standard Chartered, and was formerly co-head of JPMorgan Chase's investment bank.

References

  1. ↑ Braithwaite, Tom (2013-02-14). "Credit derivatives pioneer to head PNC" . Financial Times . Retrieved 2022-08-15.
  2. ↑ "William S. Demchak Chairman, President and Chief Executive Officer The PNC Financial Services Group". PNC. Retrieved 14 April 2015.
  3. ↑ "BACKGROUND INFORMATION FOR THE WILLIAM S. DEMCHAK '84 AND DEBBIE DEMCHAK STUDENT INTERNSHIP FUND" (PDF). Retrieved 14 April 2015.
  4. ↑ Rieker, Matthias. "PNC's Blunt Incoming CEO Demchak's Candor, Analytical Skills Are Noted; Business Focus is Southeast". Wall Street Journal. Retrieved 14 April 2015.
  5. ↑ "How Bill Demchak turned PNC into a US banking powerhouse". Financial Times. 2020-11-18. Retrieved 2022-08-15.
  6. ↑ "Outsmarted". The New Yorker. 2009-05-25. Retrieved 2022-08-15.
  7. ↑ "Bill Demchak President The PNC Financial Services Group". American Banker. Retrieved 14 April 2015.
  8. ↑ "Executive Profile* William S. Demchak". Bloomberg. Retrieved 14 April 2015.
  9. ↑ Lanchester, John (June 1, 2009). "Outsmarted". The New Yorker .
  10. ↑ Sabatini, Patricia. "IN THE LEAD Profiles in Leadership: William Demchak, PNC President and CEO". Pittsburgh Post-Gazette . Retrieved 14 April 2015.
  11. ↑ "William S. Denchak". NNDB. Retrieved 14 April 2015.
  12. ↑ Braithwaite, Tom. "One Time Whizz Kid Pauses for Breath". Financial Times. Retrieved 14 April 2015.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.