ELIZABETH WARREN: “We need a strong cop on the beat to make sure no one steals your purse on Main Street or your pension on Wall Street.”

“Elizabeth Warren Calls on JP Morgan Chief to Resign from NY Federal Reserve Bank Board,” Reports Stopforeclosurefraud.com

  • Says Responsibility and Accountability Long Overdue
  • Architect of the Consumer Financial Protection Bureau
  • Warren Continues Challenging Wall Street Arrogance

BOSTON, MA – In the wake of $2 billion in losses at JP Morgan Chase due to risky trading, Elizabeth Warren, the architect of the Consumer Financial Protection Bureau, today called on Jamie Dimon, JP Morgan’s CEO, to resign from his position on the Board of Directors of the New York Federal Reserve Bank as a first step to signal to the American people that Wall Street understands the need for greater responsibility and accountability.

“Wall Street banks continue to have fundamental problems, and tough oversight and accountability are urgently needed. Jamie Dimon deserves credit for taking public responsibility for $2 billion in losses based on a trading strategy he called ‘poorly reviewed,’ ‘poorly monitored,’ and even ‘sloppy.’ But Dimon is not only the CEO of JP Morgan, he is also a member of the Board of Directors of the New York Federal Reserve Bank, where he advises the Federal Reserve on the oversight of the financial industry,” Warren said.

JP Morgan Chase CEO Jamie Dimon should resign from the NY Federal Reserve Bank Board

Last week, JP Morgan Chase announced a $2 billion trading loss in two months.

Sunday on Meet the Press, JP Morgan CEO Jamie Dimon said, “We know we were sloppy, we know we were stupid, we know there was bad judgment.”

After the biggest financial crisis in generations, Americans are frustrated that Wall Street has still not been held accountable and does not appear to consider itself responsible. Wall Street banks continue to have fundamental problems, and tough oversight and accountability are urgently needed.

Women are sometimes the louder voice of reason – likely because we say what we think rather than sugar-coat the comment.  Apparently, Nomi Prins feels the same way as most Americans, whether male or female…Jamie Dimon’s Unshakable Hubris, By Nomi Prins, The Daily Beast (16 May 12)…

“Why, oh why, can’t Treasury Secretary Tim Geithner or Fed chairman Ben Bernanke have the balls to call Dimon out on this?

Meanwhile, there are two potential outcomes that neither Jamie Dimon’s contrition, nor his ego, will alter. The first: there is no definitive restructuring of the banking system, and publications keep running banner headlines like “Is Wall Street Too Big to Regulate?” when some other “egregious” mistake permeates the likes of JPM Chase, Bank of America, or Citigroup (leaving aside the fact that Dimon’s mention of mortgage losses belies the fact that current mortgage accounting doesn’t capture the declining value of the underlying collateral). Then we have this discussion, again for 10 minutes, in the midst of greater, negative consequences….”  [to read more click here].

Dimon is not only the CEO of JP Morgan, he is also a member of the Board of Directors of the New York Federal Reserve Bank, where he advises the Federal Reserve on the oversight of the financial industry.

Dimon should resign from his post at the New York Fed to send a signal to the American people that Wall Street bankers get it and to show that they understand the need for responsibility and accountability.

________________________________________________________________________

Frankly, we don’t think we should just trust Wall Street banks to regulate themselves. Because as we learned during the 2008 financial crisis, they are not just taking risks with their own money — they are taking risks with the whole economy.

That’s why today, with the Progressive Change Campaign Committee, we’re calling on Congress to put Wall Street reform back on the agenda and to begin by passing a new Glass-Steagall Act. This was the law that stopped investment banks from gambling away people’s life savings for decades — until Wall Street successfully lobbied to have it repealed in 1999.

Will you join us in calling on Congress to hold Wall Street accountable and pass a new Glass-Steagall Act? Click here to stand with us!

A new Glass-Steagall would separate high-risk investment banks from more traditional banking. It would allow Wall Street to take risks, but not by dipping into the life savings and retirement accounts of regular people.

And by making banks smaller, a new Glass-Steagall could also help put an end to banks that are “too big to fail” — further avoiding costly taxpayer bailouts.

Wall Street’s risky bets nearly brought the economy to its knees in 2008. But instead of taking responsibility, Wall Street lobbied to water down the Dodd-Frank financial reforms of 2010 and fought to weaken the reforms Congress passed.

It has become clear over time — and made even clearer this past week — that additional Wall Street reforms are needed.

Please join us in urging Congress to put Wall Street reform back on the table — and pass a new Glass-Steagall Act today.

1 thought on “ELIZABETH WARREN: “We need a strong cop on the beat to make sure no one steals your purse on Main Street or your pension on Wall Street.”

  1. Pingback: ELIZABETH WARREN: “We need a strong cop on the beat to make sure no one steals your purse on Main Street or your pension on Wall Street.” |

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