JimBowie1958
Old Fogey
- Sep 25, 2011
- 63,590
- 16,757
- 2,220
Not saying it is all due to this one incident, but this illustrates the nepotistic corruption and conflict of interest that riddles Wall Street which is little more than agreat big Ponzi these days run by HFT algos and Treasury credit bearing Big Bankers.
Revealed: JPMorgan Paid $190,000 Annually to Spouse of Bank's Top Regulator | | AlterNet
Revealed: JPMorgan Paid $190,000 Annually to Spouse of Bank's Top Regulator | | AlterNet
On May 10 of this year, Jamie Dimon, Chairman and CEO of JPMorgan, announced that billions of insured deposits at his bank had been invested in high risk derivatives and had sustained at least a $2 billion loss. The Department of Justice and FBI have commenced investigations. Dimon is expected to announce the current extent of those losses this Friday in an earnings conference call.
Following the May 10 announcement, there were numerous calls for Dimon to step down from the Board of Directors of the Federal Reserve Bank of New York. That organization is the primary regulator of the firm. There was widespread public outrage that the CEO of a bank had no business serving on the governing body of his regulator. (The New York Fed has a long history of such conflicts.)
Now it has emerged that not only was Dimon conflicted in his role on the New York Fed but the President and CEO of the New York Fed had an equally dubious conflict of interest.
William C. Dudley has been employed by the New York Fed since January 1, 2007, first heading up the powerful Markets Group. That Group manages the supply of bank reserves in the banking system according to the mandate of the Federal Open Market Committee (FOMC). On January 27, 2009, Dudley was elevated to President and CEO of the New York Fed. Financial disclosure forms for 2008 through 2010 show that Dudleys wife, Ann Darby, was a former Vice President of JPMorgan and had holdings of more than $1,500,000 in deferred income accounts at the firm as well as between $250,000 to $500,000 in a 401(K) plan there.