Jamie Dimon, CEO of JPMorgan Chase
Jamie Dimon, CEO of JP Morgan and known as the "Emperor of Wall Street," is facing the threat of a disgraceful resignation. He is set to appear in court to testify over allegations of being involved with Jeffrey Epstein, a minor sex offender who committed suicide in prison. Dimon, who recently played a leading role in managing the financial domino effect triggered by the Silicon Valley Bank (SVB) collapse and reaffirmed his presence on Wall Street, has suddenly found himself embroiled in scandal and on the brink of dismissal.
According to major foreign media on the 30th, Dimon will be summoned to court in May regarding JP Morgan's financial transactions with billionaire Jeffrey Epstein, who committed numerous sex crimes against minors.
Last year, the government of the U.S. Virgin Islands and victims of sex crimes filed a lawsuit against JP Morgan, claiming that the bank was aware of Epstein's criminal activities but effectively supported sex trafficking through financial transactions from 1998 to 2013. The complaint also alleges that despite multiple internal warnings about the client's illegal behavior, the company ignored them at an institutional level. Dimon has been leading JP Morgan as CEO since 2005.
In particular, prosecutors obtained a document titled "Dimon Review," which appears to indicate Dimon's review, while investigating internal communications among employees. This document reportedly contains evidence that Dimon ignored and concealed the risks associated with transactions involving Epstein despite internal reports warning of the dangers. According to sources familiar with JP Morgan’s internal investigation, no records have been found showing that Dimon directly communicated with Epstein or discussed maintaining him as a client, foreign media reported.
If it is revealed that Dimon was aware of Epstein's sex crimes after taking office at JP Morgan and maintained the business relationship for the company's benefit despite this knowledge, he is highly likely to be forced to resign from his CEO position. Epstein was a notorious sex offender who exploited countless minors. He transferred money to teenage girls through JP Morgan accounts and withdrew large sums to cover expenses for a modeling agency that lured these girls, as well as maintenance costs for private jets used to transport VIP clients and girls to resorts. JP Morgan did not cease transactions with Epstein even after he was first sentenced for sex crimes in 2008.
The spread of allegations that Dimon was already aware of Epstein’s heinous sex crimes has shocked Wall Street. Dimon has led JP Morgan since 2005 and during the 2008 global financial crisis, he acquired Bear Stearns and Chase Manhattan, which had gone bankrupt after investing in subprime mortgages. Through these moves, he built JP Morgan into the world’s largest bank.
After the SVB collapse earlier this month and the crisis spreading to other small and medium-sized banks, Dimon stepped in as a savior, gathering 11 banks to deposit $30 billion into the struggling First Republic Bank. During this process, it was revealed that U.S. Treasury Secretary Janet Yellen personally contacted Dimon to request his help, reaffirming his influence.
The global financial sector is closely watching whether Dimon, a Wall Street titan who has acted as a firefighter in times of crisis, will ultimately resign in disgrace or clear the allegations and restore his reputation. Currently, JP Morgan claims that Dimon was unaware of any matters related to Epstein.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
