PrezBo stands by J.P. Morgan’s man
J.P. Morgan Chase announced last month that it lost $2 billion this past quarter. The losses apparently stemmed from “errors, sloppiness, and bad judgment,” according to J.P. Morgan CEO Jamie Dimon. Now some are calling for Dimon, who has a seat on the Federal Reserve Bank of New York’s board of directors, to step down from his post at the Fed to avoid a potential conflict of interest.
One person who doesn’t think Dimon should step down? Lee Bollinger, chairman of the New York Fed’s board of directors. Prezbo says Dimon should not resign, and anyone who says that he should resign has a “false understanding” of how the Fed works, and is being “foolish.” You can check out the full story at the link, or the Reader’s Digest version after the jump:
1. As noted above, J.P. Morgan reveals in May that it lost $2 billion in trading last quarter.
2. Critics immediately begin to call for Dimon to step down from his position at the Fed, citing a conflict of interest. Former IMF chief Simon Johnson starts a Change.org petition to have Dimon removed. It reads, in part:
The fox is guarding the henhouse. It is entirely unacceptable to have Mr. Dimon involved in the governance of the New York Fed, an organization that oversees his activities, decisions, and potential losses.
To date, the petition has garnered more than 36,000 signatures. Also calling for Dimon to step down: Massachusetts Senate candidate Elizabeth Warren, who says Dimon’s resignation would “send a signal to the American people that Wall Street bankers get it and to show that they understand the need for responsibility and accountability.”
3. Dimon does not resign from his position on the Fed.
4. Someone (the Wall Street Journal) asks PrezBo what he thinks. “I do not think he should step down,” Bollinger replies. He goes onto explain away the calls for his ouster as the uproar of people who have a “false understanding” of the way the Fed works, and that these critics are stupid it is “foolish” to complain about having a banker on the board, because the law requires bankers to serve on the board.
Bollinger also noted that board members are not involved in “oversight of the supervisory function of the New York Fed,” but rather merely advise regional bank presidents on the economy and help in selecting bank presidents.
In any case, Dimon’s second term on the Fed board ends in December. By custom, board members leave after two terms, so he’ll probably be leaving the board then. Bollinger’s second term ends in December, as well.
Dimon needs to immediately step down from every position he holds. He is a distraction with a huge conflict of interest. He is killing JPMorgan by staying on.
Since when do Leftist Parasites like you care about the maximization of JPMorgan’s shareholder value? If shareholders want Jamie Dimon to step down from the NY Fed board or any other position he holds, they will make it known through their elections to the JPMorgan board.
And as for “killing JPMorgan”, 5 years ago, I owned the stock of JPMorgan, Morgan Stanley, Lehman Brothers, Bear Stearns, Merrill Lynch, and Bank of America.
Do you know which one has done the best out of that lot? That’s right. JP Morgan. Now please shut your Leftist Parasite trap. I know that now Occupy Wall Street is over, there’s much left for you to do, but criticizing matters of corporate governance and monetary policy (like the fact that the law requires Jamie to serve on the NY Fed board) on which you have no knowledge isn’t a productive use of your (or my) time either.
Wow, sounds like a right wing parasite. Just becase someone makes money does not mean in any way they are ethical or able to lead and make rules and regulations for everyone else. Quite the opposite, in fact should rule. you would not want the company with the most flux and most risk taking in charge.
Since when does a director on the board of the New York Fed make “rules and regulations for everyone else”?
Said rules and regulations are made by the Board of Governors in DC, who are appointed by the President, subject to Congressional confirmation.
Do you even know what the New York Fed does? Do you know what the President of the NY Fed does? Do you know what the board of directors of the NY Fed does?
Maybe you should find these out before ascribing powers to them.
daughter used to go to barnard. another reason to keep it in the family.
“So, like, these leftist cocksuckers would have been happier if JPM turned a $3 billion profit?”
Jamie Dimond’s daughter went to Barnard. She did not get into Columbia. I guess a recomendation from JPMorgan does not hold as much weight as Baba Walters. LOL.
Barnard is not Columbia College, but it’s an affiliate of Columbia University. It’s time this should be clear to everyone. On the other hand SIPA, unlike both Barnard and Columbia College, is not for undergraduates.
Sometimes it’s so confusing keeping track of the whole Barnard vs. Columbia College vs. Graduate Schools distinction. Thanks for clarifying! A few follow-up questions for you: I’ve heard of this school called “Fu” something or other…some people called it “C’s”…how does that tie into this whole complicated organizational structure? And CUNY? I know these new ID cards say “Columbia University in the City of New York.” So CONFUSING!!
Bollinger is siding with money. His position is not an ethical one: http://www.project-syndicate.org/commentary/predators-and-professors