JPMorgan Chase & Co. (JPM): Some Major Challenges & Lax Oversight

And I’m not the only one who thinks so. In January, the Federal Reserve saw such severe weaknesses in JPMorgan’s audit functioning, risk controls, and loss modeling that it required the board to submit a plan to enhance oversight.

Let me repeat. The U.S. government thought the board was doing such a poor job in its oversight function that it had to step in and require board members to do their jobs properly. Not good.

The Foolish takeaway
Regardless of whether these failures resulted from negligence or incompetence, I believe it’s time that shareholders send a strong message to JPMorgan Chase & Co. (NYSE:JPM)‘s leadership that they’re done accepting excuses, and that they expect to see a more proactive approach to risk management. Unless some serious leadership changes take place, I think shareholders will continue to face serious risks to their investment.

Will JPMorgan investors be able to knock out six directors in this year’s top fight? Keep your eyes on May 21, the date of the main event, the bank’s annual meeting.

The article The Most Exciting Proxy Fight This Year originally appeared on Fool.com and is written by M. Joy, Hayes.

Motley Fool contributor M. Joy Hayes, Ph.D. is the Principal at ethics consulting firm Courageous Ethics. She has no position in any stocks mentioned. Follow @JoyofEthics on Twitter. The Motley Fool owns shares of JPMorgan Chase.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.