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.

By TheWeek.com May 14, 2012 1:37PM
Image: CEO (© Photodisc/Getty Images)Reeling from a massive $2 billion loss on a risky bet, JPMorgan Chase (JPM) CEO Jamie Dimon has launched a campaign of contrition to contain the damage. "We made a terrible, egregious mistake and there's almost no excuse for it," he told NBC's 'Meet the Press.'

 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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35Comments
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Yes. Fired. No stock options. No settlement payout. Nothing. Nadda. Not-a-dime. Take your time, walk out of your office (escorted to the street by security guards) and head on down the boulevard.
May 14, 2012 3:39PM
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Mr Dimon should step down from J.P. Morgan Chase and remove himself from the Board of the New York Federal reserve Now.
May 14, 2012 2:09PM
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As Donald Trump would say  "  Jamie Dimon , you're FIRED !! "
May 14, 2012 2:50PM
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Reinstate the obvious!!! he/they spout the same **** heard over and over !!! when will the world wake up!!?? REINSTATE GLASS STEIGEL!!! Guys like James Dimon will continue to PLAY the system and milk it!!! the skin they have in the game is NEVER THEIRS!!! Since its obvious the parasites at the top as he is one will always get off scot free and continue to suck the life out of any financial system thye can access, the systems have to be immunized from them just like my old hound dog has to have flea and tick dip and stronger each time!! and then every once in awhile i have to pick off a stubborn, nasty tick!! I use a hot knife so the tick backs out of the wound without spiitting back its vile germs.  Then to assure its dead I BURN IT!!! Something similar might work for the top parasites at the infected financial institutions.
May 14, 2012 3:21PM
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Fire them all--then prosecute them--make an example of them -something has to be done--the American people have been bilked by Wall Street daily, weekly, monthly, yearly--our investments go down and their bonuses & pay goes up
May 14, 2012 2:45PM
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Jamie Dimon...you're fired! Now go home to your mansion and probably hot wife I'm guessing. 
May 14, 2012 3:26PM
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Time to get him of the New York Fed. board talk about conflict of interest no wonder the news was so slow comming out. Hell the way things work in this country they will probaly make him the next head of Treasury.
May 14, 2012 3:35PM
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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.

May 14, 2012 4:01PM
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This guy was never the genius people made him out to be.  He was just fortunate to be in the right place at the right time.  His PR people really created a great image for him.  How can anybody be CEO of a Bank and sit on the Fed Reserve Board of NY.  Sounds like the fox guarding the chicken coop.  Chase has along history of violating banking rules and paying a smal fine and promising not to do it again, only to just take up where they left off and do the same violation again and again.  Yes, he should be fired for cause and not receive any golden parachute.  The Big banks need to rid themselves of executives like him.
May 14, 2012 2:41PM
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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.

May 14, 2012 3:52PM
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"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.

May 14, 2012 2:31PM
May 14, 2012 4:14PM
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He has to immediately step down from the Fed -- it's absurd that he's a member of that body to begin with.  Talk about a conflict of interest!  But at JPMC, the Board should rewrite his employment contract so his own compensation is tied to the performance of his employees, and mandate a complete reorganization within the executive ranks.  The fact that there was no oversight or management of the London trader who was responsible for the derivatives bets they were making speaks volumes about how the company is run.  But in the end this could all be a blessing in disguise: when you're the guy who's fighting tooth and nail against regulations designed to prevent this kind of malfeasance, it seems to me a "mistake" of this magnitude is a gift to the people trying to enact those regulations.  The real question is whether the GOP will continue to block any meaningful reform, as they have all along.  THAT'S the issue, not whether Dimon should keep his job.
May 14, 2012 2:56PM
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Time to fire JPMorgan CEO Jamie Dimon?
If you really have to ask this question, somebody better fire you right along with him!!!!!!!!!!
May 14, 2012 3:35PM
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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.

May 14, 2012 4:12PM
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I'm glad that they consulted Eliot Spitzer in regards to the conflict-of-interest.  He should know a lot about those situations.

May 14, 2012 4:19PM
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Fire Dimon...plan and simple...he's an arrogant prick!
May 14, 2012 2:59PM
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Better late than never. With a golden parachute, hmmmmm or is that shower?
May 14, 2012 4:29PM
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I think Wall Street needs to be renamed 'Casino" Street. These folks are nothing but a bunch of bad gamblers and are the real threat to the United States.
May 14, 2012 5:54PM
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Reinstate Glass Steagal, then break up the big banks and regulate them completely. Remember Corporations are people and real people have almost every aspect of thier lives regulated and red taped to death.
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