We have often covered the ongoing story of Jamie DImon’s role at Chase. The Annual Meeting will be held today. All the hoopla over Dimon’s dual role on the Board and as CEO masks more fundamental issues. Is Dimon indispensable? Probaby the only job he has done that is unique is that he is the personal banker for the POTUS, probably for FLOTUS, and even their daughters Sasha and Malia. No one has asked about the fox guarding the hencoop. The Whale trades in London have disappeared. And, most importantly, the proper role of banks has not been defined. What is a bank and what is a bank’s function in society. A few shareholders benefit from the whopping 25% made on monies held in the middle ground. But what of customers, small businesses and keeping cash local? Not a word. A more measured view which suggests a sweep of the board.
The big banks are the problem. Think of the regulatory issues Chase is facing. They are being asked to tighten money laundering controls, forinstance. Now Dimon has stated that if he takes in dirty money, holds it (earning big bucks) and then sends it out whereever, it is not dirty. A tortured definition at best. The Fed wants more capital backing banks. The Federal Energy Regulators are looking at bank trades in the power markets. If only both the regulators and the bankers would wake up and think about what a bank is.