Monday, 14 May 2012

Elizabeth Warren: Jamie Dimon Should Resign From New York Fed Board

Elizabeth Warren Jamie Dimon
Elizabeth Warren called on JPMorgan Chase CEO Jamie Dimon to resign from his post on the Federal Reserve Bank of New York's board, citing the need for "responsibility and accountability" in the financial industry.
Dimon, who disclosed a $2 billion loss by the banking giant last week, should "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," Warren said in a statement following Dimon's Sunday appearance on "Meet the Press."
During that interview, Dimon said he "absolutely" believed that the enormous loss would give regulators more ammunition against the banks. Warren latched onto that comment, stating that Dimon's place on the board of directors gave him the power to advise the New York Fed on "management oversight and policy," creating what the Massachusetts Democrat feels is a clear conflict of interest.
"We need to stop the cycle of bankers taking on risky activities, getting bailed out by the taxpayers, then using their army of lobbyists to water down regulations," Warren said. "We need a tough cop on the beat so that no one steals your purse on Main Street or your pension on Wall Street."
Warren, an outspoken advocate of banking reform who oversaw the Troubled Asset Relief Program and helped create the Consumer Financial Protection Bureau, is running in a closely-watched Senate race against incumbent Scott Brown, a Republican. She has stressed her role as a consumer advocate throughout the campaign.
Watch Warren discussing the JPMorgan Chase loss last week:
Below, a look back at Elizabeth Warren's political career so far:
Introduces Financial Product Safety Commission
1  of  10
Elizabeth Warren announced a bill creating a Financial Product Safety Commission with House and Senate Democrats in March 2009. The body was designed to have oversight over mortgages and other financial instruments to protect consumers against predatory practices. She said if the agency had existed before the subprime collapse then "there would have been millions of families who got tangled in predatory mortgages who never would have gotten them." HuffPost's Ryan Grim reported:

Without all these toxic assets on banks' balance sheets, the institutions wouldn't be on the brink of collapse and the recession would be more manageable. "Consumer financial products were the front end of the destabilization of the American economic system."

Sen. Charles Schumer's cosponsorship of the bill is notable because of his proximity to Wall Street. The bill's merit, the New York Democrat said, is that it regulates the actual financial product rather than the company producing it.

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