A group of JPMorgan Chase shareholders urged support for its proposal to split the chairman and CEO roles at the big bank in a letter Monday. The proposal is number "6" in the proxy materials for JPMorgan's shareholder meeting, taking place May 21 in Tampa, Fla.
Among the multiple reasons cited for the split, the group points to lapses in oversight evidenced during the London Whale debacle. Perhaps the most compelling reason for splitting the roles: The bank's being in constant crosshairs with regulators. It's being investigated by eight regulators at present.
A confidential July 2012 letter to JPMorgan from its lead regulator, the Office of the Comptroller of the Currency, is quoted as saying "the capabilities of management or the board may be insufficient," thereby leading the OCC to downgrade the company's management rating from 2 to 3.