Bloomberg Backs JPMorgan CEO as Dimon Gets Shareholders Vote to Keep Title
Tuesday, May 15, 2012
Mayor Michael Bloomberg defended the CEO of JPMorgan Chase after he survived a push to strip him of his title Tuesday following a $2 billion trading loss by the bank.
CEO Jamie Dimon won endorsement from shareholders on Tuesday to keep his title and his pay package from last year.
"Jamie Dimon is the kind of guy who will stand up, take responsibility, no nonsense," Bloomberg said. "This is not a guy who's going to try to blame anybody else. And that's one of the reason people have such respect for him."
Dimon, unusually subdued, told shareholders at the JPMorgan annual meeting that the company's mistakes were "self-inflicted." Speaking with reporters later, he added: "The buck always stops with me."
His pay package passed with 91 percent of the vote. The vote to strip him of the chairman's title won only 40 percent support. Most of the votes were cast before the trading loss was announced.
According to Joe Nocera, a columnist for the New York Times and contributor to WNYC, knowing about the loss ahead of the vote would have made small difference, but not a giant one.
“JPMorgan still makes more money than its competitors and it’s still done better than most of its competitors and Jamie Dimon is still widely viewed as the best of the banks CEOs,” Nocera said.
Meanwhile, the FBI's New York office is leading an inquiry into the $2 billion trading loss, the result of a trading bet that went sour.
A person familiar with the matter told WNYC that the inquiry is in the preliminary stages. At this time, it's unclear if there have been any violations of the law.
JP Morgan had no comment.
Last week, the Securities and Exchange Commission also began its own review.
Charlie Herman, Stan Alcorn and the Associated Press contributed reporting