Bloomberg News

Dimon Exits New York Fed Board After Expiration of Term

January 08, 2013

JPMorgan Chase & Co. (JPM:US) Chief Executive Officer Jamie Dimon has left the board of the Federal Reserve Bank of New York.

Dimon is no longer on the board after the Dec. 31 expiration of his second term as a director, Jack Gutt, a spokesman for the New York Fed, said today in a telephone interview. Dimon was a Class A director, elected by the banks in the New York Fed’s district. A replacement has not yet been named.

Lawmakers last year criticized Dimon for serving on the Fed district bank’s board after JPMorgan reported a trading loss that rekindled concern the New York Fed, the company’s principal regulator, is too cozy with Wall Street. Senator Bernie Sanders, a Vermont independent, along with Democrats Barbara Boxer of California and Mark Begich of Alaska, introduced legislation last year that would remove the industry’s executives from the 12 regional Fed banks’ boards.

Congress created the Fed in 1913 with public and private features. Three bankers are on each of the 12 Fed district bank boards, along with six other directors who represent the borrowing public. They play no part in bank supervision.

Dimon said in June that the district banks benefit from industry leaders’ input.

“If I had a board, I’d want to hear from a lot of different types of people,” Dimon said June 19 at a hearing of the House Financial Services Committee in Washington. “It’d be funny to be talking about global markets and not have someone involved in the global markets at the table. It certainly does not have to be me.”

Joe Evangelisti, a spokesman for the bank, said Dimon finished out his term, declining further comment. Dimon’s departure from the board was earlier reported by the New York Times.

To contact the reporter on this story: Caroline Salas Gage in New York at csalas1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net


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