JPMorgan Risk Committee Directors Big On Life Experience, Wall Street Experience Less So

The three directors who oversee risk at JPMorgan Chase include a museum head who sat on American International Group Inc.’s governance committee in 2008, the grandson of a billionaire and the chief executive officer of a company that makes flight controls and work boots. What the risk committee of the biggest U.S. lender lacks, and what the five next largest competitors have, are directors who worked at a bank or as financial risk managers. The only member with any Wall Street experience, James Crown, hasn’t been employed in the industry for more than 25 years…The committee, which met seven times last year and hasn’t changed its composition since 2008, approves the bank’s risk- appetite policy and oversees the chief risk officer, according to the company’s April 4 proxy statement. [Bloomberg]

(hidden for your protection)
Show all comments

70 Responses to “JPMorgan Risk Committee Directors Big On Life Experience, Wall Street Experience Less So”

  1. Guest_of_Honor says:

    I don't see a problem here.

    — Jon C.

    • guest says:

      You know Jon C(orzine) actually had, like, A LOT of Wall Street experience, right? Ran this li'l place called Goldman Sachs for a while? Ringing any bells?

    • lee mulcahy says:


      Here's the backstory on James Crown's Aspen Skiing from Aspen Skollie:

      This is the story about a small town folk singer and his “anthem for local working people.” It’s about corporate bullying, irony and karma. It’s the story of “Big Money.”

      Dan Sheridan, a 20-plus year Aspen local, released an album in 2003 that included a song called “Big Money.” While the song has been popular among some locals, Sheridan has never gained much notoriety past the Aspen corridor of Highway 82. That is until recently. On January 1, 2010, Sheridan played a gig at Sneaky’s Tavern in the new and incomplete Snowmass Base Village. [Yesterday’s front page story was: Skico accused of fraudulent actions in Base Village condo sales. It was written by local author Brent Gardner-Smith.] A group in the small crowd requested “Big Money” and Sheridan obliged them by playing the song. Sheridan said he had noticed “dudes in full-length fur coats and cowboy boots” but that he “got the feeling that everyone wanted to hear it.”

      While no one ever heard from the man-fur sporting tourists, there was apparently one person in the crowd who did not want to hear it. An Aspen Skiing Company Vice President complained to the Director of Food and Beverage, and on the following Monday Sheridan was fried. By that Wednesday the Aspen Times published a story detailing the events, and Jeff Hanle, the Skico’s spokesman, was quoted as saying, “An artist can express himself how he wants. But that doesn’t mean we have to provide him the stage.” Suddenly everybody was talking about “Big Money.”

      The newspaper was flooded with letters to the Editor with such headlines as “Censorship by Skico,” “Downright Pathetic,” and “Boycott Skico,” and by Thursday the Aspen Skiing Company was calling Sheridan to say that he could come back and play any song except for “Big Money.” Aspen Daily News printed the story “Skico welcomes Sheridan back without “Big Money””. Hanle called the incident a “PR debacle” and said that he hoped Skico could put the incident behind them and move on.

      Unfortunately for Skico, that was just the beginning. More letters poured into both Aspen newspapers,… and even Pitkin County Commissioner Jack Hatfield dissed the Skico for all to see on Grassroots TV. The original story became the most read article on the Aspen Times website, and it was picked up by Denver’s Westword.

      Skico moved on and decided to ride the holiday wave by promoting Aspen Snowmass in major cities like Chicago, San Francisco, and L.A. The company took its first billboard ads since 1958 with the headline “It’s Time to Fly” featuring hometown sweetheart Gretchen Bleiler. However, the story would not die.

      While the Skico was posting billboards along the 405 in L.A., the L.A. Times was printing an article titled “Folk song strikes a touchy chord in Aspen”, which can now be found on their website under Home/Collections/Wealthy People. Instead of giving Sheridan a quiet warning and letting a couple of urban cowboys take offense at a small show, Skico officials alienated Aspen locals and undermined their own major advertising campaign. Corporate karma can be a real bi#ch.

      The story finally reached Gawker: “Take heart, hippie communist folk singer Dan Sheridan… you are quite correct. Big money ruins everything. And that’s gonna suck for the rich, if they ever leave their cocaine-and-expensive-hooker-strewn Jacuzzis.”

      The good news is that Dan Sheridan is now a folk hero, and everyone wants to hear “Big Money.” Still, is an apology authentic if it only comes after you have been called out? Would Sheridan still have a job if the Aspen Times had never printed that story? No one at Skico has yet to take responsibility for the firing of Dan Sheridan. There is no transparency and no accountability, and perhaps that is why this story continues to play.

      You have to wonder what is going on at Aspen Skiing Company. In a new story Curtis Wackerle for the Aspen Daily News ask why Skico has stopped delivery of the newspaper to its hotel properties. Hanle is quoted as saying that the amount of newsprint on display at the properties “was just overwhelming” and that it had nothing to do with the Daily News running the story “Skico’s green efforts didn’t include Residences at The Little Nell.”

      “An artist can express himself how he wants. But that doesn’t mean we have to provide him the stage” sounds a lot like “A newspaper can say what it wants, but that doesn’t mean we have to provide it the circulation” or advertise with it. It’s not so much a bullet to the Daily News as it is a sucker punch. Skico fail.

      -Skollie Life

  2. InfiniteGuest says:

    Real people with real lives are how a real bank keeps it real.

  3. Guest says:

    Yes, No, Yes, Yes

  4. DrunkenIrishman says:

    Fuck you, whale! And fuck you, dolphin!

    — Japanese JPM Shareholder

    • guest says:

      Rose: You're a "Wong"?
      Gus: Well, my mother was Irish.
      Rose: And your father?
      Gus: Wasn't.

  5. VonSloneker says:

    What the risk committee of the biggest U.S. lender has, and what the five next largest competitors lack, are nepotic director apointments who guarantee their families will continue to do business with JPMorgan.

    – Cpt. Obvious

  6. Alt_EST says:

    Could Geezer Oil Trader maybe regale us with what risk management was like 25 years ago? Please?

    • GeezerOilTrader says:

      I'd be fucking glad to. In the good old days when a real trader exercised wearing fucking headband and tubesocks …and maybe some shorts…fucking Exxon didn't require a letter of credit and would do business with anyone. Then some fuckheads shit in that nest …I think it was some firetrap called Houston Oil and Refining..and Exxon became in the mid-1980s the hardest company to deal with and fuck you if you don't like getting paid 120 days from delivery! In the early 1980s when the was NO FUCKING CRUDE OIL…no ANS, little or no Indonesian, no shale economically available, etc., companies like Exxon had their people tell your Geezer that a month-to-month evergreen fucking crude oil sale to them meant "life of the field" and they could make life difficult if you didn't perform. Then that FUCKHEAD Sheik Your Money made a FUCKING SPEECH at Oxford University, home of the famous fucking shoe I guess, and said the Saudis were going to TAKE BACK THEIR MARKET SHARE by PRODUCING and SELLING THE SHIT OUT OF ALL the OIL They Could PRODUCE!!! Oil prices fell from 35 to 9 per barrel and that fuckhead at Exxon walked on my P+ $1.75/bbl sale. "But what about 'life of the field" and all that other stuff" I stammered to him? Sorry is all he said and sorry he was!!!
      Risk management? If you were a dumbass in Abilene, TX, with 8 fucking transport trucks hauling oil to a Mobil LACT unit you could get $8 million in trading credit from them. The general procedure in Houston after decontrol in 1981 was to give anyone with an asset $20 million of trading credit before LCs were needed. (Yes, I know you shit birds in the natgas biz call them LOCs but it's the same fucking thing.) Paribas provided for almost all of the LCs in Houston in 1980-1983 and then their fucking New York office wanted in on the gigantic cash flow so Houston people started shitting on their New York brethren's LC rates. It was fun to watch Houston get a little merde on their face. Risk management? There was no risk management. A risk manager back then would have been a person who challenged your genius, didn't believe in your superhuman trading powers and would have MADE YOU TAKE A LOSS!!! Of all people!!! If you had a loser on the trading books you moved it to refining. That's why refined products traders hate their oil traders. Risk management? We spent more time looking for lipstick on our underwear than we did for bad trades!! Risk management?back in 1981 I took a marketer for Anadarko and his wife to a Rodney Dangerfield show and in th middle of the show she leaned over and said to me, "I like Rodney but I'd really like to see Frank Sinatra….." YES MA'AM!! That was risk management in the 80s. Either that or fire a trader after a $6 million loss, whichever came first. Pardon the expression.

      • Guest says:

        It's like summoning an old, angry genie in a bottle.

      • VonSloneker says:

        It's been said before, and I'm sure much of Houston would say the same, but this could be my dad talking about the pussified brand of witchcraft "…all these overeducated fucks"* practice today.

        * I am typically the proxy for all the overeducated fucks of the world.

      • unwanted guest says:

        Thanks for that, old timer.

        My version of the good old days is remembering quaaludes.

        (Or trying to).

  7. Guest says:

    Is riding a blow-up whale the NKI and I missed the email/memo/comment? I thought Jamie was still the boxer.

    • Bored says:

      Obviously that's a picture of the risk committee…..

      ….grandson of a billionaire or not, that haircut is inappropriate for whale riding

  8. PermaGuestII says:

    This should surprise exactly nobody who has ever worked at JPM.

  9. GUEST says:

    Keeping usless committee people on a usless committee ..

    Wow….I'm shocked.

  10. R. Gupta says:

    Being on boards is fun and a great way to meet people.

  11. Decaying ex-trader says:

    So are we seriously thinking that having financial sector heavyweights on the risk management committee would reduce the amount of risk that JPMC took on? In your dreams. I thought the big hitters were the ones who got us into this mess in the first place.

  12. guest says:

    Bob Rubin had finance experience. Thought Citi should take more trading risk. Didn't work out.

    – M&A guy who would have all traders rounded up.

  13. Sandy Weil says:

    I am hearing that Jamie Dimon is talking about trigegring "clawbacks" in Employee Restricted Stock Awards.
    Why should employees subsidize management's fraud ? Shouldnt these losses be born by shareholders who then in turn lien on the Board of Directors to get new management ???

  14. Thanks for this wonderful post, full of ideas. This will benefit all if these things are applied correctly.

  15. Terrence Westbrook says:

    I guess sometimes, pure talent can be just as effective as experience. It's just a matter of finding health and safety consultants with enough talent to do the job.

  16. 2elKez wow, awesome blog article.Much thanks again. Awesome.

  17. Hey, thanks for the article.Really thank you! Really Cool.

  18. Thanks for sharing, this is a fantastic post.Really thank you!

  19. A big thank you for your blog.Really thank you! Awesome.

  20. This is one awesome post.Really looking forward to read more. Will read on…

  21. demolidora says:

    Major thankies for the article post.Really looking forward to read more. Cool.

  22. tutorials says:

    Thanks for sharing, this is a fantastic blog article.Really thank you! Really Great.

  23. dieta dukana says:

    I really enjoy the post. Keep writing.

  24. I really enjoy the post. Will read on…

  25. I value the blog post.Really thank you! Really Cool.

  26. Wow, great article post. Cool.

  27. Thanks-a-mundo for the blog.Much thanks again. Great.

  28. funny post says:

    Great, thanks for sharing this article post.Really looking forward to read more. Fantastic.

  29. Muchos Gracias for your blog article.Really looking forward to read more.

  30. I really liked your post.Really thank you! Really Cool.

  31. LCD says:

    I value the blog.Really looking forward to read more. Want more.

  32. David Mejias says:

    Very informative blog post.Really looking forward to read more. Keep writing.

  33. Great blog.Really thank you! Cool.

  34. great video says:

    I truly appreciate this article post. Cool.

  35. saikrishna says:

    Thanks for sharing, this is a fantastic blog.Thanks Again. Want more.

  36. Really enjoyed this article.Really thank you! Really Great.

  37. Looking forward to reading more. Great blog post. Will read on…