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Dimon under pressure to resign NY Fed post

May 24, 2012: 12:34 PM ET

Jamie Dimon has no business being on the board of directors at the New York Federal Reserve Bank, according to Simon Johnson and thousands of others.

Johnson, an influential professor at MIT and a former IMF chief economist, says the chief executive of JPMorgan (JPM) should step down immediately or be forced to resign his post at the New York Fed.

JPMorgan CEO Jamie Dimon is feeling the heat.

To get his point across, Johnson has formed a petition calling on the Fed to give Dimon the boot. The petition, posted online at Change.org, has received 2,293 signatures so far.

JPMorgan is under investigation by a host of regulatory agencies, investor groups and the U.S. Congress.

But the New York Fed, which is JPMorgan's main regulator, cannot conduct a thorough investigation with Dimon on its board, said Jonson. "The public can't believe that an honest investigation can occur or that real accountability can ever come from it," he said.

Once one of the most admired CEOs on Wall Street, Dimon has come under fire from all corners after JPMorgan disclosed a massive $2 billion loss on trades that Dimon attributed to "sloppiness."

The loss has made JPMorgan a lightening rod for outrage over risky bets at big banks  at a time when the economy is still recovering from the 2008 financial meltdown.

Among the other high-profile figures calling for Dimon to relinquish his Fed post are Elizabeth Warren, a former top economic advisor to President Obama. U.S. Treasury Secretary Tim Geithner has also suggested that having bankers like Dimon on Fed boards creates a negative perception, which is worth fixing.

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Ben Rooney
Ben Rooney
Staff writer, CNNMoney

Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news.

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