Morgan Overhauls Computer System, Stocks Dip

Morgan Overhauls Computer System, Stocks Dip

Shares in JPMorgan Chase (NYSE:JPM) declined Tuesday amid reports the banking giant has overhauled the leadership of its internal research group responsible for quantum computing and other forms of advanced technology, hiring a State Street (NYSE:STT) executive.

Marco Pistoia, the former IBM inventor who became head of JPMorgan’s applied research group in 2020, has recently left the bank, according to a person briefed on the matter, who declined to be identified speaking about personnel.

That group conducted research into how emerging technologies including quantum computing and communications, blockchain, computer vision and networking could solve problems in finance.

JPMorgan has hired Rob Otter, who is State Street’s global head of digital technology and quantum computing, to replace Pistoia, according to an employee memo sent Monday.

Before joining State Street in 2022, Otter headed up JPMorgan’s Onyx blockchain business and worked in technology roles at Barclays, Credit Suisse and Goldman Sachs. (NYSE:GS)

The report goes on to say quantum computing has the potential for huge advances over traditional computing and is expected to have applications in finance, drug development and materials science, among other fields.

Tech giants including Alphabet (NASDAQ: GOOGL) and IBM (NYSE:IBM) are racing to create a reliable quantum computer with commercial applications, while small publicly traded quantum companies like Rigetti Computing and D-Wave have seen their shares surge over enthusiasm in the nascent field.

JPM shares lost 16 cents to $290.82.