The three directors who oversee risk
at JPMorgan Chase
& Co. (JPM) include a museum head who sat on American International
Group Inc.’s governance committee in 2008, the grandson of a billionaire and
the chief executive officer of a company that makes flight controls and work
boots.
What the risk committee of the
biggest U.S. lender lacks, and what the five next largest competitors have, are
directors who worked at a bank or as financial risk managers. The only member
with any Wall Street experience, James Crown,
hasn’t been employed in the industry for more than 25 years.
“It seems hard to
believe that this is good enough,” saidAnat Admati, a
professor of finance at Stanford
University who studies corporate governance. “It’s a massive task to watch
the risk of JPMorgan.”
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