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Dimon seeks to hold off revolt
Trading » JPMorgan CEO to face shareholders in wake of $2B loss.

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Among them is the so-called Volcker rule, which would block banks from trading for their own profit, a practice known as proprietary trading. Dimon has said the trading in question would not violate the rule.

On Monday, Sen. Tim Johnson, D-S.D., chairman of the Senate Banking Committee, announced additional hearings on financial regulation and said he expected the JPMorgan loss to be discussed.

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Four days after Dimon announced the trading blunder, the executive responsible for trading strategy at JPMorgan, one of the highest-ranking women on Wall Street, became the first casualty.

The bank said that Ina Drew, 55, the chief investment officer for the bank and a 30-year veteran of the company, would retire and be replaced by Matt Zames, an executive in JPMorgan’s investment bank.

Dimon said Drew’s "vast contributions to our company should not be overshadowed by these events." He stressed that the company remains "very strong."

"We maintain our fortress balance sheet and capital strength to withstand setbacks like this, and we will learn from our mistakes and remain diligently focused on our clients, who count on us every day," Dimon said.

JPMorgan is holding the meeting in Tampa partly because the bank is expanding in Florida. Dimon will address shareholders, who will get to ask questions.

They will also vote their approval or disapproval of his $23 million pay package from last year. The vote is non-binding, and Dimon is unlikely to lose it. The overwhelming majority of votes were probably locked in before the meeting.

Not all shareholders are squarely behind him. An influential union, the American Federation of State County and Municipal Employees, wants Dimon to be stripped of his chairman’s title, which he holds in addition to being CEO.

"The stakes are too high to leave Jamie Dimon unsupervised," said Gerald W. McEntee, trustee for AFSCME, which owns JPMorgan shares through its pension plan.

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James Rickards, author of "Currency Wars: The Making of the Next Global Crisis" and a partner in JAC Capital Advisors, a New York hedge fund, has called for him to resign as CEO.

JPMorgan has access to funding from the Federal Reserve at an interest rate of almost zero and lends it out to people and businesses at a higher rate, he pointed out.

"The money that his bank put at risk comes at the cost of everyday Americans who are getting zero income on their savings accounts, and Dimon should take the ultimate responsibility," Rickards said.

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