Time to fire JPMorgan CEO Jamie Dimon?
The nation's largest bank is scrambling to contain the fallout from a risky bet gone wrong, but some say the purge has to start at the top.
The country's biggest bank has also parted ways with three executives, including Chief Investment Officer Ina Drew, a veteran at the company and reportedly one of Dimon's most trusted allies. However, condemnation is still raining down on Dimon, who's vociferously opposed the sort of strong government regulation of Wall Street that critics say is necessary to prevent risky bets from causing a repeat of the 2008 financial crisis.
Should JPMorgan fire Dimon?
Yes. He clearly isn't fit to lead: It's increasingly clear that Wall Street banks are essentially "playing incredibly complex computer games with unimaginable sums of other people's money," says Alex Pareene at Salon. But when rumors of the bad trade bubbled to the surface a month ago, Dimon said there was nothing to worry about, meaning he either lied or doesn't understand the complex trades his own company is making. "Jamie, I think maybe you should consider retirement; this bank is too complicated for you," says Pareene.
Hold on. JPMorgan is still a strong company: Dimon's anti-regulatory chest-beating makes it "especially tempting to beat up on" him now that he's in "deep doodoo," but JPMorgan isn't a danger to itself or the financial system, says Allan Sloan at The Washington Post. At face value, $2 billion sounds like a lot of money, but JPMorgan has $608 billion in customer deposits. The trading loss was just a drop in the bucket. While everyone can "feel free to snicker at the spectacle of Jamie Dimon losing his swagger and having to eat crow," the bank is on solid ground.
He should at least quit the New York Fed: Unbeknownst to most people, Dimon sits on the board of the New York Federal Reserve Bank -- "the very organization that is supposed to oversee his bank's financial practices," says Eliot Spitzer at Slate. If nothing else, "Dimon should resign from the New York Fed board immediately," since his oversight role is incompatible with his other role as Wall Street's anti-regulatory pit bull.
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He should have been the first to go...with no severance package. Problem is, CEO's are always "around to take the credit" but "nowhere to be found to take the blame". The buck stops at the CEO's door and they should be held accountable for what happens under their watch. This is just another reason I HATE big corporations and the greed and thievery they represent.
He should be in jail let alone getting fired. If he is fired you can bet he has a huge golden parachute in place to carry him over until Obama makes this crook the next treasury secretary. He knew damn well the speculative risks he was allowing to proliferate at Chase. Chase would be declared insolvent if they were forced to write off all their bad debt, but instead they hide it. Now they changed the market to market accounting to market to model so the insolvent banks can pass the so called stress tests and shift the burden off on the treasury. They are given 0% money by the fed. to go out and speculate with, not to make loans with, but to pump up the stock market. Soon the media will latch on to the huge losses JP Morgan Chase had speculating on silver. These banks need to know someone goes to jail for fraudulant transactions, but the administration basically closed down the agencies that prosecute when regulations are broken.
"REINSTATE GLASS STEIGEL!!!" <-----Ditto.
If you don't beleive regulation should be put back. Then how about you give me all of your money. I'll go place several option trades and if I double up then I'll give you your 1% return and pay myself a fat bonus.
If I loose it all don't worry the FDIC will give you $250,000.00 for taking on all the risk with no chance of reward.
Time to fire JPMorgan CEO Jamie Dimon?
Two billion is a lot of money but it is all relative.
Chase will still make a profit for the quarter
and Mr Dimon will be all the wiser.
Now we know why he cashed in his last batch
of stock options.
I'm glad that they consulted Eliot Spitzer in regards to the conflict-of-interest. He should know a lot about those situations.
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