Dump Dimion

Jamie Dimon, the CEO of Chase, has lost billions and risked another financial crisis this year – but is tasked with regulating Chase and other NY-based banks at the Fed.

WTF? Jamie Dimon needs to step down from the Fed, NOW.

Here are the facts.

Footnotes & more info:

[1] The Federal Reserve Bank of New York (“NY Fed”) is by far the most important of the 12 regional banks that, along with the central Federal Reserve Board of Governors (chaired by Ben Bernanke) and a few other more smaller bodies, make up the Federal Reserve. The NY Fed, like all of the regional banks, is in charge of regulating the banks within its specific district – and since almost all of the most important US Banks (with some important exceptions) are in the NY area, that makes it the first among equals: covering enormous banks and bank-holding companies in NYC that you hear of every day like HSBC, Morgan Stanley, Goldman Sachs, Citigroup…and Chase.

[2] Specifically, in addition to being one of 9 overall board members, he sits on the Management and Budget Committee of the NY Fed.

[3] How much money is that? Let’s put it this way: Chase’s entire first-quarter profit this year was $5.4 Billion – they are literally making bets that lose them half the money they make in a good year. This is insane. Or put another way: the office that the bet went through, the chief investment office, has brought in $4 Billion prior to this bet in the last three years – which accounted for 10% of Chase’s profit over that time. Do the math, and we’re talking almost a quarter of the money Chase has made, in net, over the last three years. This is also insane. Learn more here:


[4] The specific bet he’s making involves proprietary trading, which is super-complicated – all you need to know is that it played a big part in the financial crisis, and that Glass-Steagall and the Volcker Rule would mean you couldn’t do it with depositor money. Even worse, Chase is pouring lobbyist and campaign money into bribing Congress not to pass a real Volcker Rule or Glass-Steagall, the exact pieces of legislation that would make it illegal/inconvenient to use our FDIC-insured deposits on super-risky bets. Want more detail on the specific bet, as well as the regulation that could help put it to bed? Check these out:



[5] You can learn more about Dimon’s response here:


[6] There’s a bunch of good policy options we can also pursue – bring back Glass-Steagall, put in a strong Volcker Rule – but really, Jamie Dimon needs to be exposed and made toxic, until the public demand he either resign or be kicked out of the Fed – and only Ben Bernanke can do that, really. This article does a good job laying out the policy options that would prevent these kinds of insane bets from causing another financial crisis:


[7] Here’s Geithner on the need for Dimon to resign:


[8] Here’s some information about the last major NY Fed Board resignation, former Lehman Brothers head honcho Dick Fuld: