Elizabeth Warren Calls For Dimon To Resign From NY Fed Board

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It's unlikely that any of Wall Street's criminals will ever go to jail, but maybe if we kick up enough of a fuss, we can get Jamie Dimon kicked off the board of the NY Fed. Not that there's anything wrong with sitting on the board of the agency that's supposed to oversee you, of course! It's been this way for so long, they don't even understand why we'd be upset about it:

JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon’s position as a director on the Federal Reserve Bank of New York’s board renewed concern that the central bank is too close to the institutions it oversees.

Dimon, who disclosed a $2 billion trading loss by his firm last week, is one of three bankers sitting on the New York Fed’s board, as mandated by Congress under the Federal Reserve Act. While directors have no role in bank supervision, Elizabeth Warren, a Massachusetts Democrat running for U.S. Senate, called for Dimon’s removal from the district bank board because the New York Fed regulates JPMorgan. Senator Bernard Sanders, a Vermont Independent, said he sees a conflict in Dimon’s two roles.

Fed governance came under scrutiny after taxpayer-funded bailouts during the 2008 financial crisis sparked a political backlash. The Dodd-Frank Act overhauling bank supervision required a Government Accountability Office audit of the central bank, which was completed last year and found the Fed needs to strengthen policies governing conflicts of interest and improve transparency.

Having bankers on the boards of regional Fed banks “is a problem, period,” said Sheila Bair, senior adviser at Pew Charitable Trusts and a former chairman of the Federal Deposit Insurance Corp. “Why the regional banks have members of the industry that they regulate on their boards is beyond me.”

It's funny, isn't it, how the women are the ones with the loudest voices on this issue?

Warren, a Democrat, has served in the Office of the President and as chairwoman of the Congressional Oversight Panel for the Troubled Asset Relief Program. She helped establish the Consumer Financial Protection Bureau.

“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,” she said. “Dimon should resign from his post at the New York Fed to send a signal to the American people that Wall Street bankers get it and to show that they understand the need for responsibility and accountability.”


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