By repaying $25 billion in bailout funds that JPMorgan Chase & Co. received under the Troubled Asset Relief Program (TARP), the bank removed itself from government oversight of its executive compensation.[1] JPMorgan Chase Chairman and CEO James Dimon said it was money the bank had never needed.[2]
In February 2010, Dimon received nearly $8 million in restricted stock units as part of his 2009 annual compensation. In addition to this stock award for 2009, he also received an additional $6,244,300 in special stock appreciation rights that vest over five years.[3]
Dimon has said it is unfair the big banks are the only ones that would have to pay President Obama’s proposed bank tax. He also opposes the creation of a separate agency devoted to consumer financial protection and believes that a systemic risk regulator should be controlled by the Federal Reserve.[4]
According to the Los Angeles Times, JPMorgan Chase spent more than any other bank on lobbying in 2009. JPMorgan Chase boosted its lobbying expenses 13 percent in 2009 to $6.2 million, enough to pay for more than 30 lobbyists.[5]
In 2009, JPMorgan Chase lobbied on numerous issues, including regulatory reform proposals—“to address recent market turmoil”—the creation of a Consumer Financial Protection Agency, the impact of proposed corporate governance changes, proposed bankruptcy law changes regarding mortgages, increased capital requirements, the value of derivatives and legislation on credit cards, overdraft protection and mortgage lending.[6]
JPMorgan Chase is a member of the Financial Services Roundtable, which opposes the creation of a consumer financial protection agency.[7] Its asset management and securities subsidiaries are members of the Securities Industry and Financial Markets Association, a group that opposes taxation of securities transactions.[8]
Dimon is a member of the Business Roundtable that has opposed including corporate governance reform as part of any financial regulation legislation.[9] He is also a member of the Financial Services Forum, a group that is against limiting the size of financial institutions.[10]
[1] “Treasury Lets 10 Banks Repay $68 Billion in Bailout Cash,” The Wall Street Journal, June 10, 2009.
[2] “JP Morgan and 9 Other Banks Repay TARP Money,” The New York Times DealBook, June 17, 2009.
[4] “Dimon Decries Washington’s Treatment of Banks,” The New York Times DealBook, Feb. 25, 2010.
[5] “Banks Step Up Spending on Lobbying to Fight Proposed Stiffer Regulations,” Los Angeles Times, Feb. 16, 2010.
[6] JPMorgan Chase 2009 lobbying reports, available at www.opensecrets.org.
[7] Financial Services Roundtable, letter to the Senate Banking, Housing and Urban Affairs Committee, July 8, 2009, available at www.fsround.org.
[8] Press release, Securities Industry and Financial Markets Association, Nov. 18, 2009, available at www.sifma.org.
[9] Press release, Business Roundtable, Nov. 11, 2009, available at www.businessroundtable.org.
[10] Financial Services Forum, letter to members of Congress, Nov. 13, 2009, available at www.financialservicesforum.org.
Watch AFL-CIO President Richard Trumka discuss the 2010 Executive PayWatch. This year's PayWatch spotlights Wall Street bankers and their outrageous pay and lobbying efforts against financial reform. More Videos
