Group 5 - Mini Task chapter 10

1. The governance system in JPMorgan Chase is not doing very well in protecting shareholder's best
interest, since Jaime Dimon holds more power as he is the CEO and a member of a board as well, he
took exceptional risk and suffered a billions of losses for regulatory and legal settlements. It was clearly
seen that good corporate governance is invisible and he focus only to the major institutional investors.
Also, a lot of analyst pointed out JPMorgan chase for their lack of corporate governance.

3. Suggestion for JPMorgan Chase is that there is a need to strengthen the board oversight which is a
serious problem from a shareholder’s perspective. There is also a need of changing their board
governance, they must elect an independent chairman, acting as a check and balance, that can be an
effective constraint on chief executive. The London Whale trading losses may not bring down the
JPMorgan Chase, but shareholders still have reason to want change. They need to be more accountable
and transparent to investors so as to minimize expropriation and unfairness for shareholders. Avoiding
conflict of interest is also crucial, for keeping the trust of shareholders and the public.