We had an interesting conversation yesterday about the timing of JPMorgan’s disclosure of $2.3 billion trading losses, after the tallies were counted in a shareholder proposal to replace Mr. Dimon as chairman of the bank’s board of directors. Mr. Dimon is currently chairman and chief executive officer, and while the attempt to strip him of the board role failed, the proposal received 41 percent of the vote, an improved result for investors like AFSCME’s Lisa Lindsley*, who see a conflict of interest when the two roles are shared.
“That was a strong vote,” said our friend, who thinks about these things. “What would have happened if Dimon had disclosed the losses two days earlier? Would there have been more time to build support for the proposal?” Read More