NY Fed rules sideline Dimon and banks
Thursday 23 December 2010 - by Will Henley
Jamie Dimon, chief executive of JP Morgan Chase, has been barred from voting on senior Federal Reserve bank appointments under new corporate governance rules announced yesterday.
"The board approved the revised and expanded rules, which are meant to further ensure that the board functions free from conflicts of interests, or the perception of such conflicts," it said.
Only "class B" and "C" directors, who represent borrowers from agriculture, commerce, industry, services, labour, and consumers, can now vote on senior appointments.
Other than Dimon, the other two class A directors affected are Banco Popular de Puerto Rico chairman Richard LCarrión and Adirondack Trust president Charles Wait.
Directors influence monetary policy by setting the discount rate and appointing bank presidents, who in turn sit on the influential Federal Open Market Committee.
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