Jefferies Group LLC wrongfully fired its former Asia head of equity trading Grant Williams over a newsletter that included a reference to a Hitler parody video, a Hong Kong judge ruled. Williams drafted a newsletter to subscribers which included a link to a video clip depicting Adolf Hitler, with subtitles created by a U.S. filmmaker that mocked JPMorgan Chase & Co. Chairman and CEO Jamie Dimon. The newsletter was released prematurely and Jefferies fired Williams the next day for unacceptable and inappropriate conduct, according to the judge. Jefferies management was “hypersensitive” and “irrational,” in its response to the publication of the Dec. 7, 2010 client newsletter, Judge Conrad Seagroatt said in issuing his decision today in Hong Kong’s High Court…The YouTube Inc. parody video clip uses a scene from the 2004 German movie “Downfall” showing Hitler screaming at his subordinates at the end of the war. Subtitles suggested Hitler’s character was Dimon, speaking in the context of bets on the price of silver. [Bloomberg]
Judge Rules Jefferies Should’ve Just Chilled After Senior Equities Exec Sent Around Video Depicting Jamie Dimon As HitlerBy Bess Levin
Banks Not Exactly Living Up To Terms Of Mortgage Settlement No Reason To Think That Said Settlement Isn’t Working, Settlement Authors SayBy Jon Shazar
It seems that a few boutique mortgage lenders are playing a little fast and loose with the rules they agreed to follow when they agreed to pay $25 billion to get the government to leave them alone. Read more »
The House of Morgan is about to have to have some pissed off people in upstate New York and the west coast of Florida on its hands. Read more »
The real JD ended up faring pretty well for himself; the inflatable one, pictured above with noted Bank Reform Bitch,* who gathered outside 270 Park with other other activists today to protest Dimon keeping the his chairman title, can’t say the same thing! Read more »
Jamie Dimon’s continuing employment as chairman and CEO of JPMorgan Chase may or may not be an interesting case study in shareholder rights and corporate governance, but the most interesting question in bank governance is really “who cares what shareholders think?” Like: a bank is a bunch of depositor and creditor money, largely backed by explicit and implicit government guarantees, topped with a thin layer of shareholder-capital icing, and run for the benefit of that layer of icing. The shareholders are in charge because that’s how it’s done in every other sort of company, and because they bear the riskiest risk, but they certainly don’t bear the most risk on a sheer notional basis. And, since their shares are an almost at-the-money option on a vast pile of assets, they tend to have a fondness for volatility that other stakeholders might find disconcerting.1
Here’s The Epicurean Dealmaker on chairmanshipery:
The CEO is supposed to be the chief employee, leading his or her organization to deliver on the agenda and objectives the Board of Directors has set. The CEO is an operating executive.
The Chairman, on the other hand, is supposed to lead the Board of Directors in setting the agenda, strategy, and objectives of the corporation, in response to its employers, the shareholders, and all the other myriad stakeholders (employees, regulators, government officials, vendors, community members, and customers) which have a say or a stake in the activity of the firm. The Chairman and other directors of the corporation are stewards. They are not supposed to get down in the weeds, day to day, operating the various parts of the business. That is the CEO’s job. But as stewards they are supposed to think about the what-ifs, the perils and opportunities that may or may not confront the firm in the future, and the problems and threats which may be festering beneath the glittering surface of excellent corporate performance.
One way of reading that is that the CEO goes to work every day to make money for the shareholders: his job is to increase net income. Read more »
Jamie Dimon Pretty Happy He Didn’t Fire Off That Resignation Letter Last Night After His Second Bottle Of WineBy Bess Levin
He said he was going to quit if stripped of the chairman role, and god damn it, he meant it but luckily: 1. It did not come to that and 2. He got distracted watching that Harlem Shake video Lloyd sent him and fell down a rabbit’s hole of different versions on YouTube, waking up this morning with his face on the keyboard and an email that began “I believe it was John Pierpont Morgan who famously said, ‘You can all go fuck yourselves’” saved to drafts. Read more »