Investors May Lobby JPMorgan to Clip Dimon’s Wings If Vote Fails
JPMorgan Chase’s Jamie Dimon may be losing ground in his fight to keep the title of chairman, as some major investors push for more oversight of the chief executive after the “London Whale” trading losses.
At the largest U.S. bank’s annual meeting in two weeks, shareholders will be able to vote on a non-binding proposal to separate the chairman and CEO roles. Two of the bank’s top 10 shareholders told Reuters they are considering voting in favor of the proposal, a reversal of their position last year, because of the disastrous bets on credit derivatives that cost the bank more than $6 billion last year.
The proposal is only a non-binding recommendation and it is not clear what the board will do if it passes. ISS Proxy Advisory Services, the leading proxy advisory firm, on Friday recommended investors support the proposal and also said they should vote against the re-election of three directors who they said had failed in their oversight of the bank.
The two JPMorgan investors, who were not authorized to speak on the record, said that however the vote shakes out, they plan to continue to push the bank’s directors behind the scenes to take at least some power from Dimon.
N.Y. Plans Homeowner Enforcement Against Financial Firms
New York Attorney General Eric Schneiderman said he will announce enforcement actions against major financial institutions as part of his effort to “protect New York homeowners” three days after removing obstacles to an $8.5 billion mortgage-bond accord.
The announcement later today will come after Schneiderman last week said he won’t seek to block Bank of America Corp.’s effort to complete its settlement with mortgage-bond investors. Delaware Attorney General Beau Biden joined him in saying he wouldn’t object to the accord, despite having intervened in litigation over it, because investors had benefited from legal action. New York had previously said the deal represented “a tiny percentage” of investor losses.
“Our intervention in this matter helped ensure a full, thorough and transparent process,” Damien LaVera, a spokesman for Schneiderman, said May 3 in a statement. “As a result, what remains is a commercial dispute among sophisticated parties who are well represented.”
Schneiderman’s office didn’t provide any additional details in a statement about what actions it would announce today on behalf of homeowners, and whether it was connected to last week’s statement about the BofA settlement.
FERC Demands JPMorgan’s Market Probe Emails In DC Circ.
Law360, Washington (May 02, 2013, 4:46 PM ET) — The Federal Energy Regulatory Commission on Thursday pushed a D.C. Circuit panel to demand a JPMorgan Chase & Co. energy unit hand over unredacted emails for the regulator’s energy market manipulation probe, claiming the company hasn’t justified its use of attorney-client privilege.
JPMorgan shareholders urged to reject three directors
NEW YORK – JPMorgan Chase & Co shareholders should vote against the re-election of three board members because they failed to properly oversee risk-taking that led to $6.2 billion of losses on the so-called “London Whale” trades, an influential proxy advisory firm said.
ISS Proxy Advisory Services said in a report released late Friday that directors David Cote, James Crown and Ellen Flutter should not be re-elected at the company’s annual meeting this month because of “material failures of stewardship and risk oversight.”
The firm also renewed its recommendation from a year ago that CEO and Chairman of the Board Jamie Dimon give up one of those two titles. ISS said investigations of the derivatives loss, which surfaced right before last year’s shareholder meeting, showed that JPMorgan executives need more independent oversight and that the company is too big and too complex for one person to be able to do both jobs.
Shareholders will meet on May 21 in Tampa, Florida. They will vote on the re-election of the company’s 11 directors and on a non-binding proposal from four institutional shareholders calling on the board to have a chairman who is independent from management. A similar advisory proposal failed to pass last year, receiving only 40 percent of the vote. That vote was five percentage points more than similar proposals at other companies that year.
Read more: http://www.foxbusiness.com/news/2013/05/04/jpmorgan-shareholders-urged-to-reject-three-directors/#ixzz2SOFgUeVM
BofA $8.5 Billion Deal Won’t Face N.Y., Delaware Objection
Bank of America Corp. (BAC)’s effort to complete an $8.5 billion settlement with mortgage-bond investors won’t face objections from New York and Delaware, which had intervened in litigation over the deal.
New York Attorney General Eric Schneiderman and Delaware Attorney General Beau Biden said they won’t seek to block it, saying investors have benefited from litigation. New York had previously said the deal represented “a tiny percentage” of investor losses.
“Our intervention in this matter helped ensure a full, thorough and transparent process,” Damien LaVera, a spokesman for Schneiderman, said today in a statement. “As a result, what remains is a commercial dispute among sophisticated parties who are well represented.”
The move comes almost two years after the settlement was filed in New York state court for approval with backing from an investor group that includes Pacific Investment Management Co. The deal, which would resolve claims from investors in Countrywide Financial mortgage bonds, is set to be considered by a judge at a hearing starting May 30. Charlotte, North Carolina- based Bank of America acquired Countrywide in 2008.