Banking & Financial Institutions

Warren calls for Dimon to step down as New York Fed bank director

Democratic Massachusetts Senate candidate Elizabeth Warren called for JPMorgan Chase CEO Jamie Dimon to resign his position as a director at the Federal Reserve Bank of New York.

In a statement posted on her website, Warren said Dimon stepping down would “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.”

{mosads}Warren’s call comes days after Dimon acknowledged JPMorgan, the nation’s largest bank, had lost $2 billion in errant trades over the course of just six weeks.

“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.

“Wall Street banks already have plenty of voices in Congress, and they are working with an army of lobbyists to water-down the rules. I’m running for Senate to be a voice for families and to take on the big banks, to put forward new ideas, and to make a difference for people.”

JPMorgan’s Dimon has been a strong critic of new regulation enacted by the Dodd-Frank financial reform law, in particular the Volcker Rule provision, which is intended to prevent banks from making high-risk trades for their own profit.

He acknowledged that the bank’s misstep would give new ammunition to lawmakers and federal regulations seeking more stringent controls on the nation’s banking practices. 

“We know were sloppy. We know we were stupid. We know there was bad judgment,” he said in an interview aired on NBC’s Meet the Press on Sunday.

 “This is a very unfortunate and inopportune time to have this kind of mistake,” said Dimon, as Democratic lawmakers used the JPMorgan trading losses to highlight the need for further regulation.

Warren has touted her work as a consumer advocate in her campaign to unseat Republican Sen. Scott Brown in Massachusetts. She helped establish the Consumer Financial Protection Bureau (CFPB) and was pegged by President Obama to run the agency. However, strong opposition from Republican lawmakers led to Obama’s decision to recess-appoint Richard Cordray to head the new consumer watchdog.

Warren is locked in a tight race, with a MassINC poll released late last month showing her with a 2-point lead, within the poll’s margin of error.

Tags Elizabeth Warren

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