In the discussion thread: Warren calls for Dimon to step down as New York Fed bank director [View all]
Response to kpete (Original post)
Sun May 13, 2012, 05:44 PM
Neue Regel (221 posts)
19. He's also a Director of the Fed Reserve Bank in NY?
Yeah, there's no conflict of interest there with him also being CEO of JP Morgan Chase. None at all.
Not only should he be removed from the Fed, he should also be fired as CEO of Chase. The unit that lost $2 billion in 40 days of trading, the Chief Investment Office, was retooled by Jamie Dimon himself a few years ago to invest the bank's extra capital. It's his baby, and as CEO it's ultimately his responsibility. If you don't get fired for losing $2 billion in 40 days of trading, then what exactly does it take to be fired?
And let's not forget, just a month ago, when reports of losses first began to leak out, Dimon called them "a tempest in a teapot."
JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon has transformed the bank’s chief investment office in the past five years, increasing the size and risk of its speculative bets, according to five former executives with direct knowledge of the changes.
Achilles Macris, hired in 2006 as the CIO’s top executive in London, led an expansion into corporate and mortgage-debt investments with a mandate to generate profits for the New York- based bank, three of the former employees said. Dimon, 56, closely supervised the shift from the CIO’s previous focus on protecting JPMorgan from risks inherent in its banking business, such as interest-rate and currency movements, they said.
The shifting role of the CIO group at JPMorgan, which reported record firmwide profit for 2011, underscores how blurry the line can be between “proprietary trading” and hedging, and it highlights the challenge U.S. regulators face in curbing speculative bets by federally backed lenders under the so-called Volcker rule. JPMorgan, whose $2.27 trillion of assets at year- end made it the biggest U.S. bank, says the CIO manages the firm’s risks, with trades like Iksil’s forming a part of that effort.
“It’s a complete tempest in a teapot,” Dimon said on a conference call with investors today after the bank announced first-quarter earnings. “Every bank has a major portfolio and in those portfolios you make investments that you think are wise
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Replies to this discussion thread
|Jack Rabbit||May 2012||#15|
|The Magistrate||May 2012||#12|
He's also a Director of the Fed Reserve Bank in NY?
|Neue Regel||May 2012||#19|
|Uncle Joe||May 2012||#25|
|Angry Dragon||May 2012||#27|
|Brooklyn Dame||May 2012||#30|
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