Photo: Stanford Graduate School of Business
In the wake of disclosing its $2 billion trading loss from a synthetic credit derivatives portfolio, JP Morgan has faced a storm of questions and criticism those in the media and government. But today, they’ll face a whole new audience—their shareholders.The bank’s annual shareholder’s meeting will take place today in Tampa, Florida. The meeting is expected to start around 10:30 a.m.
The $2 billion trading loss is expected to be the key issue discussed at the meeting, though it is unclear how unified the responses will be among the shareholders in light of the fact that the loss was just disclosed less than a week ago.
Here’s what’s at stake—
– The shareholder motion that has received the most publicity is the proposal to remove Jamie Dimon from the chairman position and call for an independent board for the bank. But it is widely believed that the proposal will be rejected—even if shareholders pass it, the JPM board will move to defeat it, according to the Wall Street Journal.
– More shake-ups may be expected within the board, as one of the bank’s largest shareholders has asked directors to replace board’s Risk Policy Committee James Crown and remove committee member Ellen Futter.
– Shareholders are also expected to vote on a proposal that will make it easier for shareholders to ask for action from the bank’s board. The proposal has been brought up in the past, and nearly passed last year in a 49% to 51% vote, according to the WSJ.
Not there? You can follow the whole meeting through an online webcast on JP Morgan’s investor relations website. We recommend watching CNBC and Bloomberg TV for updates too, and check back at Clusterstock all day for coverage.