Critics Say Dimon Should Quit The New York Fed (Forbes)
May 24, 2012
By Susan Adams
In the wake of the $2 billion-plus trading loss at JPMorgan Chase, revealed earlier this month, a debate has been heating up about whether JPMorgan’s chief, James Dimon, should step down from the New York Federal Reserve’s Board of Governors. Today, one of Dimon’s critics, former International Monetary Fund chief Simon Johnson, started a petition on Change.org, calling for Dimon’s ouster from the Fed.
Since it’s the New York Fed’s job to regulate JPMorgan and other New York banks, says Johnson, who is now a professor at M.I.T., the public will have a tough time trusting that the Fed can do that properly if Dimon continues to serve on the Fed board. Earlier this month, shortly after JPMorgan announced the losses, Simon said he thought Dimon should resign his CEO post at the bank.
Johnson isn’t alone in calling for Dimon’s Fed ouster. In mid-May, Elizabeth Warren, a Democratic Senate candidate in Massachusetts who helped establish the Consumer Financial Protection Bureau, said she thought Dimon should step down from the Fed. Wrote Warren in a statement, Dimon should resign in order “to 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.”
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Tags: Federal Reserve, Financial Reform, Wall Street