JPMorgan CEO Jamie Dimon spoke out quickly against the hedging/betting practices that, it appears, caused the firm’s $2 billion (or more) loss over just a six-week period. Dimon stated the hedge was “poorly reviewed, poorly executed, poorly monitored,” and, most importantly, irrespective of whether it violated the Volcker Rule, it most emphatically violated the “Dimon Principle,” according to Dimon himself.
What is the Dimon Principle? Does it apply to fiduciary duty? As luck would have it, we have an opportunity to see whether it does or not.
Securities investigator and former SEC staffer Edward Siedle recently reported in a Forbes column regarding a nonprofit client and how JPMorgan Chase Bank applies fiduciary duty.
According to Siedle, “when asked (about fiduciary status), a representative of the bank stated that the bank was a fiduciary with respect to the client’s accounts and referred the client and me to a document entitled, Investment Accounts and Services Offered by JPMorgan Chase Bank, N.A. and Affiliated Banks.”