Bill Rubin, BlackRock's senior investment analyst responsible for picking financial-company stocks, didn’t mince words a year ago when he e-mailed JPMorgan Chase right after the bank disclosed a trading loss that ultimately cost more than $6.2bn.
'We are very disappointed by this turn in events, not so much by the size of the loss, but more by the bad stumble in risk management/controls', Rubin wrote, according to notes relayed to JPMorgan’s management by Sarah Youngwood in the bank’s investor-relations department. 'Major reputation and sentiment hit, damaging'.
Bloomberg reports that BlackRock, JPMorgan’s biggest shareholder with a 6.5% stake, will cast a key vote this month on whether Jamie Dimon should be allowed to retain both his roles as chairman and CEO even after last year’s stumble.
The vote pits Dimon, who runs the world’s largest trading business, against BlackRock Chairman and CEO Larry Fink, who runs the world’s biggest asset-management company.
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