This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Questions JPMorgan's Jamie Dimon Still Needs to Answer (Update 1)

(Updated with results of the annual meeting, Jamie Dimon comments.)

NEW YORK (TheStreet) -- JPMorgan Chase (JPM) Chairman and CEO Jamie Dimon successfully concluded the bank's annual shareholder meeting, devoid of any protests or drama.

Dimon was facing shareholders for the first time since he disclosed the bank's surprise $2 billion trading loss last week, which caused the stock to lose about $15 billion in market capitalization over two trading sessions.

While the total financial impact on the bank from unwinding the trades is yet to be determined- right now estimated to be "manageable" at $3 billion or more- the disclosure has delivered a blow to the credibility of both the bank and its outspoken CEO.

JPMorgan, long considered the bastion of financial stocks because of its fortress balance sheet stands to lose its "safe haven status."

JPMorgan Chase: Don't Hit the Panic Button >>

Most analysts expect the stock to stay under pressure in the near term as the bank deals with possible regulatory investigations and headline risks through the course of the year.

Questions on how losses accumulated so quickly at the bank when only a month ago Dimon called the press reports about the Chief Investment Office's trading activities a "tempest in a teapot" have been circulating in the press.

Already, the outspoken critic of regulation is facing backlash from politicians including Massachusetts Senate candidate Elizabeth Warren, who is calling for Dimon's resignation from the New York Federal Reserve board.

Some shareholders did raise the issue at the meeting, but Dimon maintained that he served on the "advisory" and not "supervisory" board of the New York Fed. "I cannot even vote for the President of the New York Fed."

He also rejected criticism that he was against regulation, directing attention to his annual letters over the past four years that said the bank supported most financial regulations and even the intent behind the Volcker rule to the extent that it focused on proprietary trading and not hedging.

He, however, acknowledged that hedging should not morph into something that is so complex that it becomes so risky as was the case at the Chief Investment Office more recently.

Still, it appears that shareholders of JPMorgan seemed to be in a rather forgiving mood, with only 40% voting in favor of a proposal that would have stripped Dimon off his chairman title.

The CEO even earned praise for his "outstanding" leadership from one investor.

Still, long-term shareholders were left with more questions than answers after the meeting. Here's a quick update on some of the key issues troubling shareholders.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs