Budget, compensation, strategic planning: That pretty much covers everything.
Johnson's call for Dimon's resignation has been joined by Elizabeth Warren and the American Constitution Society for Law and Policy, which calls Dimon's position "a stunning conflict of interest."
They're right, of course. But in saner times people would also be demanding that Dimon resign from his bank, too. His tenure as CEO has been marked by a wave of massive deals to settle criminal and civil charges. That alone would have led to disgrace and resignation in more civilized times.
Even in today's more mercenary atmosphere, Dimon's nothing to write home about: The stock was worth around $40 when he became CEO in 2005 and never rose much above $50 after that. It was $33.78 after this latest fiasco.
Dismissing Dimon
From his perch on the New York Fed board, Dimon has had a front row seat to the dispensing of a trillion dollars in secret cash to Wall Street banks -- including his own. His bank reportedly received as much as $48 billion in secret loans at 1.1 interest, when less privileged banks were paying 3.8 percent. The money saved in interest on that loan alone could amount to almost $1.3 billion.
It's like the old saying goes -- a billion here, a billion there, and pretty soon you're talking about real money.
Dimon's always been a paper tiger, a product of his own PR campaign and the low standards of his profession. If he won't resign as JPM's CEO, he should certainly resign as its Board Chairman, a title he assumed in 2006. That's another clear conflict.
An ethically-managed Federal Reserve wouldn't wait for Dimon to resolve this internal conflict by giving up one of these roles. It would have demanded it long ago. And it would have dismissed Dimon from its Board for JPMorgan Chase's past scandals, as well as the one that just came to light.
And now for something completely different ...
It seems like something out of a Monty Python routine. The boards that govern the Federal Reserve, the publicly-created central bank that dispenses money to bankers, are all dominated by ... the bankers who receive that money. Picture it if you can:
Fed Board room, 2008:ECONOMIST: This is serious! The global economy is collapsing because of your reckless gambling!
LONE CITIZEN BOARD MEMBER: That is serious. What can we do? We could break up our banks and fire their executives, or ...
BANKER: Wait! I've got it! Give us more money!
(Nods all around the table)Six months later:
ECONOMIST: This is serious! We've given you money but you're not lending it out to get the economy moving!
LONE CITIZEN BOARD MEMBER: That is serious. What can we do? Perhaps there could be rules and conditions about lending that ...
BANKER: Or they could give us more money!
OTHER BANKERS: Good one! Let's go with that!Three years later:
ECONOMIST: This is serious! Joblessness is still at record highs. Poverty has soard. Too-big-to-fail banks are bigger than ever. And you guys are still breaking the law and skirting the rules.
LONE CITIZEN BOARD MEMBER: Hmm. That is serious. The Fed could use its regulatory authority to ...
BANKER: (aside) I hate that guy. (to all) Let me see ... hmmm ... how about giving us more money?
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