Like A Party Guest That Won’t Leave, Jamie Dimon Finally Leaves New York Fed
Steve Dibert, MFI-Miami
Six months after being shown the door, JPMorgan Chase CEO Jamie Dimon has finally left the Board of Directors of the Federal Reserve Bank of New York.
In May, a fierce debate erupted within the NY Fed about what the public perception of them would be following the “London Whale” scandal that caused JPMorgan Chase to take a $2 Billion loss.
Then-U.S. Senate Candidate Elizabeth Warren (D-MA) was quoted in American Banker as saying,
“After the biggest financial crisis in generations, the American people are frustrated that Wall Street has still not been held accountable and does not appear to consider itself responsible. Dimon should resign from his post at the New York Fed to send a signal to the American people that Wall Street bankers get it and to show that they understand the need for responsibility and accountability.”
The various Federal Reserve Banks have always tried to strike a balance between keeping the private banks the Fed regulates at arm’s length, while also working closely with them to retreive the information it needs to make monetary policy. Even U.S. Treasury Secretary Timothy Geithner, a former Chairman of the Board of Directors of the Federal Reserve Bank of New York expressed concern over the public perception of the Federal Reserve System being too cozy with JPMorgan Chase and called for Dimon’s resignation from the board saying,
Contrary to what would have been the delight of the many fine people who despise him, Dimon was not given the bum’s rush by other board members. Instead, Dimon unceremoniously departed when his term expired December 31st. A spokeswoman for the NY Fed downplayed any controversy by the board by saying, “Its board members customarily step down after serving a maximum of two three-year terms”
No deadline has been set by the New York Fed’s nominating committee to recommend a replacement for Dimon.
According to American Banker, Dimon was one of three Class A directors, who are elected by member banks to represent their interests. The board’s other six directors represent the public. The two Class A directors currently on the New York Fed’s board are Richard Carrion, the chairman and CEO of Popular Inc. and Paul Mello, the president and CEO of Solvay Bank.