Warren: JPMorgan CEO should resign from NY Fed

CBS News

(CBS/AP) Democratic U.S. Sen. hopeful Elizabeth Warren is calling on the CEO of JPMorgan to resign from the Board of Directors of the New York Federal Reserve Bank after the largest bank in the U.S. claimed a surprise $2 billion loss by one of its trading groups.

Warren, who is challenging Republican Sen. Scott Brown for the late Sen. Edward Kennedy's former seat, helped create the Consumer Financial Protection Bureau. She says in a statement Saturday that Americans are frustrated that Wall Street has not been held accountable for one of the biggest financial crisis in generations and doesn't appear to consider itself responsible.

She says the resignation of JPMorgan's Jamie Dimon would signal to Americans that "Wall Street bankers get it" and to "show that they understand the need for responsibility and accountability."

Appearing on NBC's "Meet the Press" Sunday, Dimon called the trading loss a "terrible, egregious mistake," adding, "there's almost no excuse for it."

Dimon has been critical of the so-called Volcker rule -- part of President Obama's Wall Street regulatory overhaul, the Dodd-Frank Act - which bars banks from trading with their own funds. But he acknowledged Sunday he's given new ammunition to the Volcker rule's supporters.

"This is a very unfortunate and inopportune time to have this kind of mistake," he said.

Democratic Sen. Carl Levin of Michigan, a leading advocate of the Volcker rule, said on "Meet the Press" that because of this mistake, Dimon and other opponents of the rule "will lose their battle in Washington to weaken the rule. That is the real price."

[jntlw]

Ms. Warrenn is correct, Dimon is thug who should never have been on the NY Federal Reserve Board - kick all the greedy bankers who believe in less regulation off the board of any Federal Reserve Bank. We need lots of banking regulations and the Volker Act and we need it NOW!!

[smittyc]

They repealed glass steagel under the Clinton administration. That legislation was put in place after the crash of 29 to prevent what occured a decade later in the bank crisis of 07,08. The Volcker rule is really a small part of the Glass Steagel act which should be put back in place in its entirety before the banks completely collapse. What is being discussed here is really just politics, those for the Volcker know or should know that the Volcker rule while it will help a little will not end the current and very grave banking crisis. Bernakes answer, printing money, has not eased the banking crisis and no one knows this better than Bernake.

[riteousone]

JP Morgan has been one of the beneficiary of the September 2008 turmoil. The Bank acquired all of Bear Sterns and Washington Mutual's asset (without acquiring the shares of those companies and thus avoiding the liabilities that came with those assets). JP Morgan chased used very little cash to do so, buying said portofolios for pennies on the dollar. In the process they have become the largest bank in the US. I think it is time in addition to enacting and enforcing the Volcker rule, it is time to split all the large banks that own more than 10% in any service area and actually enforce the already existing Sherman antitrust act (http://en.wikipedia.org/wiki/Sherman_Antitrust_Act)

[texmary]

I don't hear the leaders of the GOP in Congress talking about this at all. This same GOP leaders accuse the president of trying to have too much regulations on business. Well, GOP what do you say now? Are you going to call for a special investigation by Congress.....are you going to prevent this from happening again????

[sandiegopete]

Talk about a conflict of interest. How does he get on the Fed board in the first place? The fact that he is even on the board of the NY Fed speaks volumes about the corruption in the Federal Reserve System.

[Ourdoc1]

He should not only resign from the Fed, he should be FIRED from his job as CEO. The entire Board of JPMorgan should be fired for allowing this. They NEED TO BE HELD RESPONSIBLE.

[kmnstrujillo]

Jamie Dimon should also resign from JPMorgan Chase as well.

Why would any corporation allow a CEO to remain who was admittedly "stupid?"

This nation needs to collectively ask why they should allow all of our eggs to remain in the 5 largest banks.

Risk should be spread out among many decision makers and not dominated by a few banks.

Why should we allow 1 trillion dollars in "bets" to be made by government insured banks.

Sheila Behr agrees that the 5 biggest banks need to be split up. The American people need to demand this action now.

[retiredgustav]

Perhaps he can get an adjoining cell with Bernie Maddoff.