McCombs Alumni Network News

From McCombs TODAY

Todd Maclin, head of commercial banking for JPMorgan Chase & Co, addressed current issues and controversies in the financial services industry Thursday, April 16 during a talk titled “Financial Leadership in Crisis Management Mode” at the McCombs School of Business.

Maclin, BBA ‘78, who serves on the McCombs Advisory Council, spoke as part of the Undergraduate Business Council’s VIP Distinguished Speaker Series. He was introduced by McCombs Dean Tom Gilligan, who said Maclin brings rich insights on the current banking crisis because of his varied leadership roles at JPMorgan, a firm that has maintained a relatively strong position during the current economic turbulence.

“For most of us in the financial services industry - myself included - the combination of events we’ve experienced is really more challenging and more unique than anything we’ve ever experienced,” Maclin said. “It’s certainly worse than anything I’ve ever seen in my 30 years [at JPMorgan Chase].”

Leadership in Times of Crisis

Maclin said the economic meltdown, which took full form in September of 2008 with the failure of the some of the country’s largest financial institutions and the merging of others, can be traced to three dangerous trends during the preceding expansionary period: rapid home price appreciation, aggressive mortgage lending and an increase in consumer spending fueled by individuals’ false sense of financial security.

The dramatic consequences of the current period will continue to reshape the industry, Maclin said. He added that recovery will come after a “long, slow process” and further delineation between winners and losers in the industry. He pointed to his own firm’s leadership and operational strength as a factor that will likely help it come out this turbulent period stronger than before.

Maclin stressed the need for future business leaders to work on building a great team within their organizations, insisting on complete honesty and transparency and managing risk based on an assessment of long term outcomes. Many of the institutions that fell assumed more leverage and structural risk than they could handle, he said.

“Choose your clients carefully, probably like how you choose your friends very carefully,” he said.  “Some of my best customers today are people I sat next to in college.”

Find a Passion and Pursue It

Maclin encouraged students to consider the financial services industry among their many career choices, saying work in the field ranks high both in terms of life opportunities and personal satisfaction. His work at JPMorgan Chase has taken him to six continents, working on many challenging business opportunities.

In response to student questions about how to succeed in the world of business and move up to executive positions within an organization, Maclin conceded to students that he was a “late boomer” in relation to many people’s standards of success. A self-confessed less than stellar student as an undergraduate, Maclin said finding a passion and area to concentrate his ambitions on during graduate school paved the way for the path to advancement he has pursued. After three decades with JPMorgan Chase, Maclin said he finds excitement and stimulation each day in the challenges and opportunities in the banking industry.

“You’ve got to find something you really, really like doing,” Maclin said. “I think there’s no substitute for getting really excited about what you’re doing everyday.”