Plenty of people have already registered their concern over the fact that Jamie Dimon, chief executive of JPMorgan, sits on the board of directors at the Federal Reserve Bank of New York, one of the bodies meant to act as a watchdog for the bank. But the ties don't end there.
Ann Darby, the wife of New York Fed president William Dudley, used to work at JPMorgan Chase, according to financial disclosure records for Dudley. And she's still getting deferred-income checks for the work she did there, to the tune of $190,000 a year.
A recent post by finance blogger Pam Martens, which ran at Martens's site and at AlterNet, flags the disclosure form in question, which was filed in January 2009.
The form, which was filed by two lawyers for the New York Fed, goes on to say that the payments to Darby "will wind down and cease in 2021," and that the lawyers are "in discussions with Mr. Dudley, representatives from the Board of Governors and JPMC" about the money.
"These interests would only give rise to a conflict in the event that Mr. Dudley were to work on a matter having a direct and predictable effect on JPMC’s ability or willingness to continue paying these amounts to Mr. Dudley’s spouse," the form states. "We hope to come back to you with an update on this issue in the near future to let you know how it has been resolved."
In an e-mailed statement, a spokesperson for the New York Fed told HuffPost that "[a]fter further discussions and analysis by the Bank's lawyers, it was agreed that Ms. Darby's fixed deferred compensation from her previous employer neither posed a conflict nor required a waiver."
Still, the fact that Darby gets regular checks from JPMorgan Chase while her husband presides over a major financial regulator underscores the trouble with regulating complex and interwoven financial institutions.
Senator Bernie Sanders and former financial regulator Elizabeth Warren, among other people, have criticized Dimon for remaining on the board of the New York Fed in the wake of JPMorgan's recent multibillion-dollar trading loss.
Original Article
Source: huffington post
Author: Alexander Eichler
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