Jimmy Dunne, co-founder of Sandler O’Neill & Partners LP, said he wouldn’t serve on a bank board as regulations make membership time-consuming and complicated.
“If you thought there would be x-amount of meetings, triple it,” Dunne, senior managing principal of the New York- based investment bank, said today in a Bloomberg Television interview with Erik Schatzker and Stephanie Ruhle. “It is not easy. It’s complicated, very time-consuming.”
Bank directors have been criticized since the financial crisis for failing to detect risky practices and lax standards. Investors have called for JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon to drop his chairman title following a derivative trade that resulted in more than $6.2 billion in losses last year.
Separating the CEO and chairman roles won’t necessarily solve issues such as excessive risk-taking at lenders and could instead result in competing agendas, Dunne said.
Boards need “members that understand and can challenge at the appropriate times,” said Dunne, 56, who sits on the University of Notre Dame’s board. “They have to ask certain questions like, ‘How much leverage do we have?’ That is a good question. I do not think they need to have a chairman separate to ask that question.”
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