Chase Manhattan Corp. named Michael P. Esposito, its chief financial officer, to the newly created position of chief officer to corporate compliance, control, and administration.
Succeeding him as chief financial officer is E. Micheal Kruse, who had been head of asset quality and product risk for global corporate finance.
Mr. Esposito, a 31-year veteran of Chase, will retain his title of executive vice president reporting directly to chairman Thomas G. Labrecque.
Chase officials said the new post was created to centralize increasingly complex compliance responsibilities under a high level financial executive.
But an outside source close to some Chase executives said Mr. Esposito, 52, has been telling colleagues he wants to retire. The new position was formed as a sort of holding tank for him, the source said.
Mr. Esposito did not return calls for comment.
Mr. Kruse, the new CFO will be aided in crafting Chase's strategic course by Arjun L. Mathrani, the Chase treasurer who was widely expected to succeed Mr. Esposito, and Peter Holzer. "They will operate as a triumvirate," the source said.
Mr Holzer, a former head of Chase's international retail banking businesses, was crowned Thursday with the new title of director of strategic planning and development, according to his office.
An Expanding Realm
A bank spokesman said Chase would move its compliance and control activities from individual business units, the controller's office, and the legal department to Mr. Esposito's realm. He also will have administrative oversight of Chase's auditors.
The spokesman said more than 1,500 employees would eventually report to Mr. Esposito.
In his long Chase career, Mr. Esposito has been the company's controller and head of the accounting and reports division.
Mr. Kruse, a native of Germany, joined Chase in 1971. He became head of asset quality and product risk for global corporate finance last September after holding several corporate lending and credit positions in China, Germany, and the United Kingdom.