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