The California Public Employees’ Retirement System (CalPERS) remarked that it will pressure the JP Morgan (NYSE: JPM) board to split the CEO and chairman roles to water down the power of long-time leader Jamie Dimon. Under most circumstances, the proposal would be ludicrous. But, JPM lost $2 billion on a series of trading positions.
Top management at the investment unit has already been forced out. No one has shown conclusively that Dimon knew the details of the risks or trades themselves. There are concerns that he did push his traders to improve results which could have fostered a dangerous attitude toward risky positions.
CalPERS does not have the votes to win the issue, but it can further embarrass Dimon and his board.
Douglas A. McIntyre