Jamie Dimon Steps Down as JP Morgan Chairman
Jamie Dimon has stepped down from his position as chairman with JP Morgan the countries largest banking institution. His actions have resulted in an investigation with the federal government and a settlement that lead to a painful loss for JP Morgan. This loss is the first one publicized or admitted to under Dimon’s watch throughout his 10 years as chairman.
During 2013 Dimon has faced 7 separate investigations held by the Justice Department. As a direct result JP Morgan faces possibly paying back $ 11 billion dollars. This amount is completely dedicated to fines.
The public has asked who will be held to some type of accountability for the loss of money. JP Morgan is also now responsible for paying $ 410 million dollars in forfeited profit and penalties directly to the Federal Energy Regulatory Commission.
The London Whale resulted in the nations largest bank to lose approximately $ 6 billion dollars in trading losses. The regulators had to be paid out $ 920 million dollars. This amount was decided upon during the active investigation by the Justice Department and Commodity Futures Trading Commission.
Normal people who follow financial news felt that Dimon should have gracefully left this position several months ago.
Jamie Dimon needs to put his ego in check. Threatening to quit if shareholders vote to split up the Chairman and CEO roles shows arrogance.
— Jonah Lupton (@JonahLupton) May 13, 2013
For the past few years JP Morgan has been paying for the best legal representation that their money can buy. JP Morgan has spent more than $21.3 billion dollars since 2008 on legal bills. The recent exposure of their true financial plight has resulted in boosting their legal representation. JP Morgan is now paying more money in legal fees currently than for all of its employees salaries combined. This amounts to $ 9.3 billion dollars in legal expenses for the past quarter in 2013.
Go home JP Morgan you’re drunk.. You can tell a lot about a business by its largest expense, what’s yours? http://t.co/XdMo9gj2rj
— David Hooton (@Dave_Hooton) October 15, 2013
Online jokes regarding the way Dimon has handled the resources of JP Morgan are floating around online.
— Stacy Herbert (@stacyherbert) October 11, 2013
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