JPMorgan's board, under fire for the bank's trading losses and myriad government probes, said on Monday that it was adding two directors and handing more power to its lead independent director, steps that give it extra supervision over Chairman and Chief Executive Jamie Dimon.
Reuters reports that critics said the moves did not go far enough to rein in Dimon, who piloted the bank through the financial crisis but is struggling to improve his relationship with regulators in the aftermath of the meltdown.
Dimon has played a key role in selecting board members in the past.
The new directors are Linda Bammann, a bank risk expert who worked for Dimon when she was at Bank One and JPMorgan, and Michael Neal, who until June was the chairman and CEO of General Electric's GE Capital.
The board of the largest U.S. bank said it was giving new powers to its lead independent director, Lee Raymond, including the right to call board meetings at any time and the right to preside over meetings that pertain to Dimon. Previously, Raymond could only call meetings of other independent directors, and only ran meetings when Dimon was absent. Raymond is the former chairman and CEO of ExxonMobil.
To some investors, however, Bammann is too close to Dimon, and the bank's steps to bolster the lead independent director role are undermined by the position being held by Raymond, a longtime Dimon backer.
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