It won’t be enough.
That’s our reaction to the news that JP Morgan Chase’s Jamie Dimon has stepped down as chairman of one of the company’s banking subsidiaries. In itself, the move is not a big one. And the bank says that it was not done in response to external pressure.
That’s nonsense, of course. At this moment, JP Morgan Chase is being hit by fines from federal agencies that add up to $12 billion and may go higher. For Dimon, the fines come on top of a no-confidence vote that would have split the roles of CEO and chairman for the parent company — a move rejected by his shareholders.
In short, notwithstanding the bank’s claim that the relinquishing of a subsidiary chairmanship had nothing to do with external pressure, the external pressure is all around. And it’s not just the money. US Attorney General Eric Holder and New York Attorney General Eric Schneiderman each want any settlement to include an admission of wrongdoing, something Schneiderman can wave as a victory while opening the door for private lawsuits from some of his political contributors from the tort bar.
The great irony here is that these attacks are directed against a company that survived the 2008 financial crisis without a taxpayer bailout. Then again, that may be what’s made JP Morgan Chase a target. Not only has Dimon not needed the feds to bail him out, he’s called some of the Dodd-Frank reforms “downright idiotic.” And he’s built a bank strong enough to pay fines that would crush less well-run banks.
And the federalistas seem bent on making him, his shareholders and an already shaky economy pay for it.