It just took one phone call but the career of Jamie Dimon "the King of Wall Street" and CEO of JP Morgan Chase is on the line. Following the announcement of his bank's $2 billion loss, former IMF chief economist Simon Johnson says Dimon should resign in disgrace. Bloomberg columnist Jonathan Weil says Dimon is "clueless" and frighteningly aloof. Dan Freed at The Street says hearing him talk yesterday "was like listening to Darth Vader apologize for embracing the dark side." Though the bank itself will likely endure, it netted a first quarter net profit of $5.4 billion, Dimon won't be getting off easy. Here's why he's under fire:
The Buck Stops with the CEO. MIT Sloan School professor Simon Johnson says JP Morgan's board can't tollerate Dimon's errors in this respect. "At any other company in any other industry under these circumstances the CEO would resign," Johnson writes. "If Boeing or Caterpillar or any other reputable company were to lose this much money relative to operations in a haphazard manner on activities that were so contrary to the principles in which the CEO stood? Yes the person in question would resign. If he didn't resign, the board would remove him."