MIT’s Johnson Isn’t ‘Optimistic’ Dimon Will Resign From NY Fed

Former International Monetary Fund chief economist Simon Johnson met with Federal Reserve staff members today and said he doesn’t believe the central bank will heed his call to remove JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon from the New York Fed board of directors.

“I have not felt optimistic about either Jamie Dimon resigning or” about the Fed revising its policies for its boards of directors, Johnson, a professor at the Massachusetts Institute of Technology, said today in a call with reporters. The meeting had “nothing that changed my lack of optimism.”

Johnson met with the Fed’s general counsel, Scott Alvarez, and Board Secretary Jennifer Johnson today after circulating a petition on the website calling for Dimon’s removal from the New York Fed’s board. The petition has gained more than 37,000 online supporters, he said.

The directors at the 12 regional Fed banks are under scrutiny following a $2 billion trading loss at JPMorgan that revived concern that its regulator, the New York Fed, is too cozy with Wall Street. Dimon is one of three bankers sitting on the board of the New York Fed.

“It is entirely unacceptable to have Mr. Dimon involved in the governance of the New York Fed, an organization that oversees his activities, decisions, and potential losses,” according to Johnson’s petition.

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To contact the editor responsible for this story: Chris Wellisz at

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