Jamie Dimon’s seat just got a little hotter. Several high-profile names have joined minority shareholders in recommending J.P. Morgan’s chief executive give up his chairman duties, a move that could see Dimon walk away from the firm sooner rather than later.
Proxy advisers Glass Lewis and Institutional Shareholder Services (ISS), two of the more prominent shareholder advisory groups, have recommended Dimon be stripped of his chairman title and removed from the board. Each firm is also asking shareholders to vote against three members of the board's risk committee— David Cote, Ellen Futter and Chairman James Crown.
The advisory firms offered a number reasons for their position, the most persuasive being the board’s failed oversight around the London Whale trading losses, which unveiled “multiple points of failure,” according to ISS. Regulators aren’t too pleased with Dimon either.
Meanwhile, three of J.P. Morgan’s largest institutional investors – BlackRock, Vanguard Group and Fidelity Investments – remain mum on their position regarding Dimon’s future, an ominous sign with just two weeks until the annual shareholder meeting, according to The Wall Street Journal. The three firms own 12% of J.P. Morgan shares.
J.P. Morgan investors voted on the same proposal last year, with 40% of the vote going against Dimon. And that was before the $6.2 billion trading fiasco was front page news.
The fallout from the non-binding vote could be huge. At least one analyst believes that if Dimon is stripped of his chairman role, he would likely leave the bank within the year.
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HSBC reported a sharp upswing in profit during the first quarter on the back of a multi-billion dollar cost-cutting effort. The U.K. bank has cut 46,000 jobs since 2011 while closing more than 50 businesses.
The 18th annual Sohn Investment Conference kicks off today in New York, giving top hedge fund managers a podium to pitch their investment ideas to attendees. The biggest names – David Einhorn, John Paulson and Bill Ackman – fared poorly last year, each recommending moves that flopped rather considerably.
Sebastian Grigg has stepped down as Credit Suisse’s U.K. investment banking head. He will be replaced by co-heads Charles Donald and Jonathan Grundy, and will move into the role of vice chairman of EMEA banking.
Job openings in The City rose by 19% in April following a dismal March. Most of the openings appear to be in compliance and risk.
J.P. Morgan appears poised to cut as many as 10 commodities traders from its London and Dubai offices. Laid off traders should eye hedge funds, which are methodically scooping up top banking talent.
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