JPMorgan: Fire Jamie Dimon!
It's really remarkable that JPMorgan Chase's(JPM) CEO is still JPMorgan Chase's CEO, and hasn't retired to a farm in Ireland like Ismay. He hasn't even stepped down as chairman of the Morgan board of directors or even as a "Class A director" of the Federal Reserve Bank of New York. He's unsinkable!
But honestly, can you blame him? After all, it's not as if there's been much reaction to this latest JPMorgan horror story.
Just to recap for anyone who has been in a cave for the past few days: On Friday, Morgan announced that its credit derivatives trading loss had expanded to $5.8 billion, and that it will have to restate its first-quarter earnings because its traders may not have accurately valued the positions in its derivatives portfolios.
Instead of gasps of horror there have been yawns. It's plain that the media and the public are a little tired of Wall Street scandals. For days, the drumbeat of daily headlines from the Barclays Libor-fixing scandal has dominated the financial news. Morgan could hardly compete.
It didn't help that the Morgan news came out just before a summer weekend, traditionally the best day for companies to dump their bad news. Dimon couldn't have asked for better timing.
But putting all that aside, the fact remains: Dimon has to go. Morgan's board of directors and the Fed have to force him out, if he doesn't have the good grace to step down. When it comes to genuflecting toward the silver-haired symbol of Wall Street excess, those two entities have been almost as shameless as the Senate Banking Committee. The Fed and the board have to man up and kick him out.
Now, I suppose one can ask: What business is it of mine that Jamie Dimon is CEO of JPMorgan or chairman of its board? After all, I'm not a JPMorgan shareholder. I'm not even a customer (as far as I know). Usually the fate of corporate executives is the exclusive province of the shareholders and their elected representatives on the board of directors. If the rest of us don't like the way Morgan is run, we can just lump it. It's none of our business.