Jamie Dimon is CEO of JP Morgan Chase, one of the largest and most powerful banks in the world. Because the bank is "too big to fail", it enjoys the protection of US taxpayers. As such, Mr. Dimon has a responsibility to safeguard the bank's financial strength – not just for the sake of his shareholders, but for the public good.
Mr. Dimon failed in that duty. He personally approved a very risky trading strategy that not only lost billions of dollars for the firm but also had the potential to destabilize the world’s financial markets.
Jamie Dimon risked depositors' money and all of our futures. Despite this, Jamie Dimon still sits on the board of directors of the Federal Reserve Bank of New York – an institution charged with supervising JP Morgan Chase and other Wall Street banks.
The fox is guarding the henhouse. It is entirely unacceptable to have Mr. Dimon involved in the governance of the New York Fed, an organization that oversees his activities, decisions, and potential losses.
Mr. Dimon also leads lobbying campaigns to maintain the right to carry out the kind of risky trading that recently lost billions and continue to put the world’s economy at risk.
Jamie Dimon should immediately resign his post at the New York Federal Reserve Bank. If he will not, then the Federal Reserve System should take whatever action is needed to remove him immediately from that position.
Both Treasury Secretary Tim Geithner and former Head of the Congressional Oversight Panel for the Troubled Asset Relief Program (and Senate candidate) Elizabeth Warren have called for Jamie Dimon to resign his New York Fed board position. To date, Mr. Dimon has given no indication that he will relinquish this post.
If thousands of Americans stand up to Mr. Dimon and demand his resignation, the Federal Reserve System will be forced listen. Ignoring this request would undermine the legitimacy and effectiveness of the entire Federal Reserve.