Friday, December 24, 2010

NY Fed rules sideline JP Morgan Chase CEO Dimon and banks

Jamie Dimon, chief executive of JP Morgan Chase, has been barred from voting on senior Federal Reserve bank appointments, under new corporate governance rules announced yesterday.


According to the New York Fed's revised procedures, all three "class A" directors are now ineligible to vote for presidents and first vice presidents of Reserve Banks.

Neither will the directors - who all represent banks - be able to approve the Fed's budget.

In a statement, the Fed's nine-member board of directors said that the change will ensure that bank directors will be unable to play "any role" in bank supervision.

The new rules were mandated in the Dodd-Frank Wall Street Reform and Consumer Protection Act and introduced on 16 December, it said.

"The board approved the revised and expanded rules, which are meant to further ensure that the board functions free from conflicts of interests, or the perception of such conflicts," it said.

Read on.

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