They also lost two BILLION outright in losses to Enron and later $8.77 BILLION in a class action suit by employees. Can someone tell me why the senior executives get multi-million dollar yearly bonuses? Perhaps the shareholders should closely scrutinize the internal operations better and become directly involved. I attended one of their yearly shareholder meetings where a group of nuns that had invested heavily in the bank had shareholder governance changes on the agenda to be voted on. What they wanted was for a change in international lending practices. JPM would lend money to Central banks in foreign countries that was intended for NGOs (non governmental agencies) usually to support business development projects to put people to work. Of course, those Central banks would find ways to siphon off large sums. The nuns wanted direct lending to the NGOs which would be more efficient and better funding. They actually had two sisters give presentations to the shareholders. They were defeated and here is why. Rather than withhold the proxy shares, the various (hundreds of thousands) of shareholders just did nothing which allowed management to vote their shares for them. Many people owned shares managed by various funds that would do the same. Later there was an effort by a different group to actual change the laws governing this process. That was also defeated. Power corrupt, absolute power corrupts absolutely.
Posted on: Thu, 19 Sep 2013 17:45:50 +0000
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