Simon Johnson, an economics professor and former International Monetary Fund counselor, says JPMorgan CEO Jamie Dimon should leave the New York Federal Reserve board if he wants the Fed to again become a bastion of stability. (June 29, 2012)
We have a floor strange historical reasons allowed very prominent. Bankers people who run too big to fail banks. To have excessive sway. Over official thinking in general and over the veterans of specific. Particular. Arrangement -- which. Which I think -- -- the moment is the fact Jamie Dimon the CEO of chase is on the board of the New York that. Now velocity -- takes a few of the stories today one report says nine billion I'm I'm reliably informed. But by Reuters -- but it's more like 46 billion. Remember this is kind of close to this thing that is what this was the trade that was a tempest in the teapot few months ago. There was no more than two billion dollars now -- original estimate of losses become the margin of error. That's the point organization. On investigate these losses and understanding what's going on what damage they can do is to -- that. Mr. Dimon is on the board. But directives of the New York it is there any. Anyone in the room who runs a corporation. Who runs a nonprofit who runs any other kind of organization with a boy who would be comfortable. With this kind of situation. I. He should step down he should step down insurers can -- is pretty oppressive that. Know that can be handled in an in an elegant fashion he's accidentally stepped back from this situation. If it undermines. The legitimacy and the integrity of the Federal Reserve System if you wanna worry about. Potential serious issues in the United States worry about political backlash against the fat. You need we need -- Federer is we need. And bastion of all. We need to get back to the -- when you were a bastion of stability we would not have this kind of undermining of its auctioning. -- decent for mr. diamond to resign receive 38000. Signatures. And the good news is that the intensity his will get you in meeting. -- the chief counsel General Counsel at the board of governors gives me immediately. That the board of governors of the Federal Reserve System. The bad news is about that he was confident of meeting many say more broadly. Not even a meeting I don't things done and resign. I think this situation is gonna continue and I just think it's it's just. Local -- goal but how. How do you explain that I mean I mean you know lots of people you've you've had relationships with people there for very long time and lots of Smart honorable decent content that's there. What not to fascinating question. I think. That. They have come to believe and this I'm speaking now all of the people who run the New York fed and some people. In in the business community that very few I mean I am only talking about the largest banks in the country I find that most address the private sector and most of the people in the financial sector. Very uncomfortable with a range for the people who run this. Organization and who run the -- -- feel they are not subject to the same. Rules and norms and expectations as the rest this. And I think it in this country and an in the history. Of this country if you go back through the fiscal history or other book was about financial history which will become very very uneasy with any group. For any part of political spectrum according so quite an evening with any amount of money behind it. -- any group says they're probable or don't I'm not subject to the same kinds of practices and and legal. And and social no homes as the rest of us. I think we should resist but that's not consistent with the way American democracy. Has -- Health care costs over control of social level and up to what an individual. And I know this is a difficult conversation.