City panel says Dimon at risk after $2bn loss while living wills are best regulatory response
JAMIE Dimon is unlikely to hold on to his job as JP Morgan chief executive following revelations of a $2bn (£1.26bn) trading loss at the US investment banking giant, according to members of our readers’ panel.
Excluding those who said they did not know, 53 per cent of panellists on our Voice of the City Panel said they thought Dimon was “unlikely” to keep his job, compared to 48 per cent who said he was “likely” to weather the storm (percentages are rounded).
The panel has been specially recruited in conjunction with PoliticsHome to represent a cross-section of financiers and business people in London.
A plurality of respondents said they were more favourable to a forced separation of investment and retail banks along the lines of the now-defunct Glass Steagall act following the incident. Forty-three per cent said the trading loss had made no difference to their opinion while seven per cent said they were less favourable.
Less than a third (32 per cent) of panellists said they were more favourable to a ban on banks trading with their own money – the so-called “Volcker rule” – following the incident. Fifty-seven per cent said it had made no difference and 11 per cent said they were less favourable.
The vast majority of panellists (69 per cent) said they were more favourable to so-called “living wills”, resolution regimes that allow failed banks to be wound down without taxpayers footing the bill. Just three per cent said they were less favourable to resolution regimes while 27 per cent said the incident had made no difference.