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Financial Stocks Roundup: Jamie Dimon Dodges a Bullet


While regulators circle the bank like sharks, Dimon survived a vote to take away his chairmanship at JPMorgan Chase.

MINYANVILLE ORIGINAL Jamie Dimon, CEO of JPMorgan Chase (JPM) survived attempts to take away his dual role as chairman and CEO.

Earlier today, the California Public Employees' Retirement System and the American Federation of State, County, and Municipal Employees made a motion to vote to take away Dimon's dual role and appoint an independent chairman.

At the company's annual shareholders' meeting in Florida, Dimon said that the $2 billion loss was a self-inflicted wound and the bank is doing what it can to correct the situation. There are no plans to reduce the shareholders' dividends as a result of the trading loss.

Meanwhile, the Department of Justice and Federal Bureau of Investigation have begun an investigation into the trading disaster that was disclosed last week to see if any criminal acts took place. The Securities and Exchange Commission and the Commodity Futures Trading Commission are also looking into JPMorgan's prop trading activities. This trading incident increases the likelihood that the federal government will step up regulation, especially the prohibition of proprietary trading known as the Volcker Rule. Dimon was a vocal opponent of this rule, arguing that banks can manage risk on their own.

Nevertheless, keeping Dimon on as chairman and CEO seems to have had a positive effect on JPMorgan's stock. The bank is up 2.84% today, while the Dow (^DJI) is up only 0.12%. The financial sector as a whole, measured by the Financial Select Sector SPDR ETF (XLF) is up 0.28% today. Goldman Sachs (GS), Bank of America (BAC), and Citigroup (C) also had modest gains today, while Wells Fargo (WFC) shares declined 0.03%.

Twitter: @vincent_trivett
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