JPMor­gan, Citibank share­hold­ers to vote on po­ten­tial breakup plans

The Pak Banker - - FRONT PAGE -

Share­hold­ers of JPMor­gan Chase & Co and Cit­i­group Inc will get to vote on whether their banks should con­sider break­ing into smaller pieces. Cit­i­group in­cluded the ques­tion in a proxy state­ment it filed on Wed­nes­day for its an­nual meet­ing next month, and the share­holder spon­sor­ing that pro­posal said he has a sim­i­lar one slated for the up­com­ing bal­lot for JPMor­gan's an­nual meet­ing. The share­holder, Bart Naylor, said he hopes the pro­pos­als get more votes than the 4 per­cent he got for a mea­sure last year that called for Bank of Amer­ica Corp to break up.

The Cit­i­group and JPMor­gan pro­pos­als "are more def­er­en­tial to the boards in ask­ing them to study the vi­cis­si­tudes of a breakup," Naylor said in an in­ter­view. He hopes proxy ad­vi­sory firms, which of­ten sway one-third of votes with their rec­om­men­da­tions to in­sti­tu­tional in­vestors, will back stud­ies by di­rec­tors even if they won't tell di­rec­tors to break up the banks.

"Th­ese banks are too big to man­age," Naylor said. Cit­i­group di­rec­tors op­posed Naylor's res­o­lu­tion in Wed­nes­day's fil­ing, not­ing that the com­pany has un­der­taken a trans­for­ma­tion on its own to be­come smaller and more ef­fi­cient. Cit­i­group has shed more than $500 bil­lion of as­sets since 2008. A JPMor­gan spokesman de­clined to com­ment on Naylor's pro­posal. Chief Ex­ec­u­tive Of­fi­cer Jamie Di­mon has said that JPMor­gan is stronger be­cause of its large and di­verse busi­nesses. The Wall Street Jour­nal re­ported ear­lier on Wed­nes­day that Naylor's pro­pos­als would be on the bal­lots.

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