JP Morgan Chase & Co. has now admitted to a $7.5 billion plus trading loss in Europe with a resulting $14 billion plunge in shareholders’ stock value, so why did only small fry in Europe – Ina Drew and Bruno Iksil – resign and the London trading office close?
Chase CEO Jamie Dimon (above right shaking hands with President Obama) is fully responsible and must go now to restore confidence in the U.S. banking industry. No more chutzpah from him anymore. President Obama’s “favorite banker” must clear out his desk at 270 Park Avenue, N.Y. immediately and give up his frequent White House visits.
Dimon, 56, is not worth his $27 million pay. He placed a bet a 12th grader would not make and others are paying for his computer generated mistake because since the carnage induced from consolidation of the financial industry post-meltdown of 2008, JPM Chase is even more “too big to fail.”
Chase shareholders were cowards not to fire him or split his chairman and CEO jobs at their annual meeting in Tampa, FL on May 15, 2012, but some shareholders are now suing the company.
Chase obviously is not a better managed U.S. institution than other banks. Fitch Ratings downgraded the company from A+ to AA- citing “potential reputational risk” and “risk governance issues.”
The Volcker Rule must be imposed without further delay and regulators must draft a strong proprietary-trading ban required by the Dodd-Frank Act.