[ by Howard Haykin] JPMorgan Chase rearranged its management ranks, upending some of the changes announced in May.  JPMorgan CEO Jamie Dimon said the reshuffling had "no relationship to the trading losses at all," referring to the $5.8 billion in derivatives losses the bank has computed to date.  He added that the transition "was already under way and is a natural progression." Nevertheless, the moves come at a very sensitive time for JPMorgan and many of its rival banks.  JPMorgan correctly feels the need to reassure investors that its risk management practices are strong and that the losses are contained.  Yet, the true impact of JPMorgan's trading debacle and the concerns it has generated in Washington and throughout the world is fire wider than JPMorgan Chase, alone.  The incident, combined with issues stirred up by the Libor manipulation scandal, has lowered the public's esteem and perceptions about the financial sector, which now faces extensive investigations, scrutiny of daily activities, and extraordinary numbers of lawsuits and regulatory fines and sanctions.  All this may further be accompanied by significant revisions in securities and banking rules and regulations. Back JPMorgan's Management Changes. Here are the changes, with some related commentary:

• Matthew Zames and Frank Bisignano promoted to co-COOs.
• Mr. Zames will continue to oversee the Chief Investment Office (CIO) and mortgage capital markets, responsibilities he was given in may.  Zames, considered by many industry observers as a kind of fix-it man, was sent to straighten out the unit that had been taking outsized risks and was the epi-center of the botched trade.  He succeeded Ina Drew, who was one of Jamie Dimon's closest lieutenants.  Ms. Drew left the bank in the wake of the trading blowup.
• Mr. Bisignano had been part of an earlier transformation at the bank when he was picked to lead JPMorgan's mortgage banking group in 2011.

• Doug Braunstein Demoted, but continuesas CFO. While Mr. Braunstein will keep his position, he no longer will report to Mr. Dimon, but instead to Mr. Zames.
• Some bank execs see the moves as a promotion for Mr. Zames;  others say Mr. Braunstein "lost some credibility with Jamie" after the trading losses.  Just weeks before the trading mishap, Braunstein dismissed concerns about the trading that would later blow up in the bank's CIO, saying in an interview that he was "very comfortable with the positions we have."

• Jes Staley promoted to Chairman of the Corporate & Investment Bank.  He will continue to serve on the bank's operating committee.
• In this new role, the former CEO of the Investment Banking business, will "head a group of senior executives who will work together to develop a view of what global banking will look like in the years ahead" --Statement Issued by Bank.

• Michael Cavanagh and Daniel Pinto will Promoted to co-CEOs of the Corporate & Investment Bank.
• Cavanagh, who was the head of treasury and securities services, has been mentioned as a possible successor to Mr. Dimon, although there's no indication  Dimon is leaving the firm anytime soon.
• Pinto was head of the European, Middle East and Africa business and global fixed income.

In a memo circulated to staff on Friday, Mr. Dimon said: "Periodically, all businesses need to reorganize to set themselves up for continued success." [Dealbook, 7/27/12] To see the statement from JPMorgan, go to:   [Businesswire,7/27/12: "JPMorgan Chase Further Unifying Businesses around Customer Needs"]