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Elizabeth Warren calls for Jamie Dimon to step down from New York Fed

Jamie Dimon

Massachusetts Senate hopeful Elizabeth Warren said on Monday that JPMorgan Chase & Co. CEO Jamie Dimon should resign from the New York Federal Reserve Board following the investment bank’s $2 billion trading loss last week.

“I think the importance of Jamie Dimon leaving the New York Fed is that it’s a public acknowledgement that he is in a position of trust,” Warren said, according to Politico. “Right now he holds the position — think about it — with the New York Fed in which he is advising the New York Fed about the appropriate oversight of banks like his bank.”

Dimon appeared on NBC’s “Meet the Press” on Sunday to explain the bank’s massive losses.

“In hindsight, we took far too much risk,” Dimon said, Politico reports. “The strategy we had was badly vetted. It was badly monitored. It should never have happened.”

Warren pointed to Dimon’s history as a vocal opponent of increased financial regulation.

“Jamie Dimon has been the one who has led the charge in order to say, ‘nope, no more regulation,’ fight[ing] back against regulation, call[ing] the regulation un-American, try[ing] to resist, try[ing] to put loopholes into regulation, hir[ing] an army of lobbyists,” Warren said, according to Politico. “This has really got to stop.”

Warren said that the issue extends far beyond JPMorgan, adding that it showcases the attitudes of Wall Street.

“What happened here is not just about JPMorgan…it’s about the kind of attitudes, that the banks should be regulating themselves instead of having real oversight,” Warren said, Politico reports. “We have to say as a country, no, the banks cannot regulate themselves. They are financial institutions that run the risk of taking down everyone’s job, run the risk of taking down everyone’s pension, run the risk of taking down the entire economy. And that means it’s appropriate to have some government oversight.”

Warren likened the trading losses at JPMorgan, the result of mismanagement of securities by CIO Ina Drew, to the same risky investments that sparked the 2008 financial crisis.

“After the biggest financial crisis in generations, the American people are frustrated that Wall Street has still not been held accountable and does not appear to consider itself responsible,” Warren said, according to Politico. “We need to stop the cycle of bankers taking on risky activities, getting bailed out by the taxpayers, then using their army of lobbyists to water down regulations.”

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