Warren calls for Dimon to step down as New York Fed bank director

[kpete]

Source: The Hill

Warren calls for Dimon to step down as New York Fed bank director
By Meghashyam Mali - 05/13/12 01:33 PM ET

Democratic Massachusetts Senate candidate Elizabeth Warren called for JPMorgan Chase CEO Jamie Dimon to resign his position as a director at the Federal Reserve Bank of New York.

In a statement posted on her website, Warren said Dimon stepping down 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.”


Warren’s call comes days after Dimon acknowledged JPMorgan, the nation’s largest bank, had lost $2 billion in errant trades over the course of just six weeks.

“After the biggest financial crisis in generations, the American people are frustrated that Wall Street has still not been held accountable and does not appear to consider itself responsible,” Warren said.

Read more: http://thehill.com/blogs/on-the-money/banking-financial-institutions/227063-warren-dimon-should-resign-from-ny-federal-reserve-bank-position

[tabatha]

1. Thank you Elizabeth Warren .

Get Jamie Dimon out of anything that affects the public (retirement would be best for him, after all he can afford it).

[byeya]

10. Just when I think I couldn't like Ms Warren more than I do, she

reminds me that she's paying attention and not afriad to speak out forcefully. I really am hoping
she is the next senator from MA.

[Jack Rabbit]

15. Let's send him to a secure retirement community

[center]

[/center]

[PADemD]

23. +2,000,000,000

[dkf]

2. Lame...

Why isn't this like asking President Obama to resign over the soldier that killed all those civilians in Afghanistan?

[Scuba]

7. We know we can count on you!

[Ikonoklast]

20. Because Mr. Obama isn't in charge of the opposing side.

Dimon is. He is trying to play both ends against the middle, so he wins no matter what.

You realize that JPM can cause massive instablility in the credit markets and crash the economy again if they are allowed to continue to fuck up?

You do realize that Dimon was more than likely completely aware of, and approved the positions that his underlings took which led to those losses, and if he wasn't, he is even moreso totally irresponsible?

But, it is nice to see that the banksters have their supporters here, using false equivalncy to help protect their heroes.

[erpowers]

24. No Control

Becsuse the President of the United States does not have control over a fairly low ranking soldier. In addition, the soldier may have had mental problems. Dimon was and is the CEO of J. P.Mprgan Chase. He actually has control over the people doing the everyday trading.

[DisgustipatedinCA]

31. aren't you just a vile little suckup?

Hint: they don't care that you're defending them, and you'll never see the kind of money they see, no matter what sorts of rightwing masturbation fantasies you harbor.

[Trillo]

3. Who or what fills the vacuum?

Another banker? Another CEO? Another suitster and tiester?

[just1voice]

13. Nobody, it'll save $410,000 a year

That's his salary as a FED douchebag.

[bluesbassman]

4. Oh no, they need to pay him a retention bonus. So tough to find good executives these days.

Warren is spot on, but short of some cataclysmic event I don't know if the Wall Streeters will ever "get it".

[Cal33]

33. Oh, Wall Streeters get it all right, in terms of knowing they shouldn't be doing such things. But

feelingwise, they just don't feel they've done anything wrong. And they
will never feel that they have done anything wrong, as long as the result
has been rewarding for themselves. And they would do it again, especially
if they feel they could get away with it. It's good for them, so it's right.

That's one definition of a sociopath.

The only thing that might prevent them from repeating doing something
wrong (our definition of wrong) is the fear of punishment. Nothing else
comes even close to touching them. Prisons are full of sociopaths -- the
dumber ones. The smarter ones usually avoid getting caught.

[tru]

5. No wonder the Fed

thinks seniors earning 1% on their savings is okay. I was naive enough to just think they were out of touch, not corrupt.

[Myrina]

32. Well if you have $50M in savings, 1% is enough ...

[dkf]

6. I would have more respect for her if she called out the real problem...lax regulation in the UK.

How is it she hasn't noticed all the problems are coming out of the Uk subsidiaries? AIG, MF global, now this.

Bah our politicians only want to use this to further their own agendas instead of addressing the root causes.

[JDPriestly]

8. It is true that the problems are in the unruly UK markets.

But Jamie Dimon and his ilk take advantage of the lawlessness in the UK to bilk American investors and the American government and people.

We can't change things in the UK, but we can end Dimon's career at the Fed -- and we should.

I'm with Elizabeth Warren on this one.

Thank you Elizabeth Warren for speaking up. I'd like to hear more of our politicians and leaders speak out against American businessmen exploiting British law or lack thereof in order to gamble recklessly and, inevitably, lose big time.

Gambling is an addiction. Jamie Dimon either is such an addict that he can't stop his damaging behavior even when he loses or if he personally is not an addict, he is hiring a lot of addicts to lose for him.

[dkf]

29. JP Morgan is one of two clearing firms for the entire US.

Why doesn't she address that?

My God she has missed the boat on the real risks that exist in regard to JP Morgan. If they leave the system as is, he IS a key person in our economy, Fed or not.

Of all things to focus on...

[JDPriestly]

34. Ending Dimon's career does not mean pushing Morgan out of the picture.

We should fully enforce the Dodd-Frank law. Give it a try and see what happens. Things can't get worse.

What lead to the 2008 crack-up was massive fraud. There is no question about it. CDOs were sold that were not at all what they were claimed to be. And that trend was the case with regard to virtually every financial instrument -- mortgages, the works, from the lowest level, let's say the mortgage sales personnel's contact with the borrower, to the top.

But how many fraud prosecutions have we seen?

Very, very few.

That's the problem. That's why the financial situation is so precarious at this time.

Finding and proving the fraud is a matter of looking through documents and obtaining expert opinions. It isn't that hard on a case-by-case basis. What makes it so difficult to prove with regard to the run-up to the 2008 crisis is the fact that it was ubiquitous -- everywhere. That is the only thing that is protecting the many, many people who were perpetrating the fraud. It's just the size of the job, the numbers of lawyers and clerks you would need to gather the evidence to prosecute.

Jamie Dimon needs to resign. It is not enough that his employees resign. He needs to resign. It would at least symbolize a willingness to take responsibility and put the financial sector back in order.

Anyone who pretends to have confidence in our financial sector at this point, with no prosecutions for past misconduct and very little chance for real reform, is a fool.

[sarcasmo]

37. +1

[The Magistrate]

12. A Fish Rots From the Head Down, Ma'am

If he did not want these chances to be taken, they would not be. He is responsible, and clearly has no business exerting any influence on national economic policy through any governmental or quasi-governmental entity.

[JDPriestly]

35. Absolutely right, The Magistrate.

[suffragette]

28. Speaking of "root causes" seems Dimon is so busy opposing regulations here and pushing

for Simpson-Bowles austerity for the rest of us that he hasn't been minding his own house of JP Morgan.

More regulation in the UK would likely be good as it would here, too.

Maybe that should include that CEO's should not also be at the Fed.

[DallasNE]

9. This Is An Astute Move By Warren

It also raises questions about the independence of the Federal Reserve to have Dimon in such a promanent position. Who watches the watchdog?

[riderinthestorm]

11. Yup, agree with Warren 100%. Just watch though, the excuse will be that only those who "understand"

derivatives can stay in charge (the ones who fucked it up) to "unwind" the mess doncha know....

Or like rMoney - "Occupy protestors" and others who protest B of A etc. are just too "young" (code for stupid) to understand the financial markets...


Gots to keep the 99%ers in their place and keep the 1% in power by any means. Disgusting.

Good on Warren for calling this out.

[annabanana]

14. jeez. . HE'S STILL THERE?

He should have headed out the door before the shit storm hit...

[MannyGoldstein]

16. Prof. Warren is a very unserious person.

She doesn't seem to realize that with Frank-Dodd in place, losses like this can never happen. She should pick up a newspaper sometime, or read DU.

Our nation is in crisis: what we need is more austerity against the 99%, not careless talk that will make bankers anxious. Warren should be focusing on making poor people poorer, not on hating savvy business people.

Sincerely,

Third-way Manny

[gratuitous]

36. What you said

Oh, and you forgot to say that Matt Taibbi is a hack. But other than that minor quibble, I think you've captured it perfectly. Leave Jamie Dimon alo-o-o-o-o-one!

[MrMickeysMom]

17. Jamie Dimon... festering tapeworm and financial terrorist....

Up the river!



http://maxkeiser.com/

[Neue Regel]

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."

http://www.bloomberg.com/news/2012-04-13/jpmorgan-said-to-transform-treasury-to-prop-trading.html

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

[erpowers]

21. No Bank CEO

No bank CEO should be a director of the Federal Reserve. I am not sure any bank executive should be a director of the Federal Reserve. That seems to be a conflict of interest. The bank CEOs are helping to make the rules that their banks will have to follow.

[erpowers]

22. President Obama and Federal Reserve Chairman Bernanke

Although I do not completely disagree with Elizabeth Warren in calling for Jamie Dimon to resign, I think it would be better for her to call on President Obama and Federal reserve Chairman Bernanke to either fire Dimon or demand that he resign his New York Federal Reserve post. That would show the American people that Wall Street has not been let off the hook.

[Uncle Joe]

25. Kicked and recommended.

Thanks for the thread, kpete.

[grasswire]

26. the people can shut down pink slime factories...

....can't we shut down Dimon?

We can if enough of us want it to happen, and will stand together.

[Angry Dragon]

27. It sounds like a conflict of interest to me

[Brooklyn Dame]

30. Those arrogant masters of the universe will

NEVER get it unless there are laws in place to force them to do do.

http://borderlessnewsandviews.com/2012/05/duh-its-financial-reform-time-stupid/