JPMorgan Chase & Co. (JPM) executives in the bank’s chief investment office will leave as early as this week after the firm suffered a $2 billion trading loss, according to a person familiar with the matter.
Ina Drew, who oversees the unit, is among three executives set to leave, the Wall Street Journal reported today, citing unidentified people familiar with the situation. Chief Executive Officer Jamie Dimon previously resisted accepting her resignation, said the person, who requested anonymity because the discussions were private. Drew didn’t immediately respond to a message seeking comment.
A better question is Dimon himself. As CEO he is responsible for knowing what the bank is doing. He obviously failed.
But the bigger question is why he’s on the board of the NY Fed, when they are the primary big bank regulator.
Why should there be any of the big bank officers also serve on the board of the entity that regulates them? That’s outrageous and an effective block on any sort of actual regulatory oversight.
So…. when does Dimon get ejected — or does he?
I’m not alone in this, incidentally. Elizabeth Warren has called for him to leave as well. She’s right, but it shouldn’t be limited to Dimon. Indeed, the very presence of a director class to “represent banks” is inherently bogus, since banks are the target upon which the NY Fed’s regulatory powers are aimed.
Necessary but insufficient Elizabeth…..