JPMorgan Chase Trying To Block Shareholder Vote On Breaking Up Bank
Jan 24 (Reuters) – A federation of U.S. labor unions is looking to force JPMorgan Chase’s board to consider breaking up the company after the disastrous “London Whale” affair, but the bank is trying to ensure that its shareholders do not get to vote on the union’s proposal.
The largest U.S. bank is seeking permission from the U.S. Securities and Exchange Commission to omit the proposal from the measures that shareholders vote on this spring, according to a letter sent to the agency on January 14.
The AFL-CIO’s Reserve Fund, a union fund that owns JPMorgan shares, wants the bank’s board to form a committee that would explore “extraordinary transactions that could enhance stockholder value,” including breaking off one or more of the company’s businesses. The panel should hire third-party advisers and make a report to shareholders 120 days after this spring’s annual shareholder meeting, according to the proposal.
The bank has become too big manage, the proposal said, citing more than $6 billion in losses last year by a trader nicknamed the “London Whale” in the bank’s Chief Investment Office in London.
“In our view, the evidence is mounting that JPMorgan has reached the point where stockholders would benefit from restructuring,” the AFL-CIO said in its proposal.