Forget about Mr. Dimon's subordinate role as Chrm. & CEO of JPM Chase, this is about his role as Chrm, of the Federal Reserve Bank of New York.
In a word, interconnectivity.
Everything he does as Chrm & CEO of JPM Chase, he is also officially doing, in his role as Chrm of the Federal reserve Bank of New York, since it is his senior role, by virtue of authority.
Directors of Federal Reserve Banks and branches have a special obligation for maintaining the integrity, dignity, and reputation of the Federal Reserve System.
ANY connection to ANY dodgy activity, ANYWHERE, harm the FED and it's reputation.
Read the following Rules of Conduct for Directors Of Federal reserve Banks and Branches here:
"I understand that, pursuant to 18 U.S.C. § 208, it may be a federal crime for me to participate in the Procurement as a Reserve Bank director if it will affect my financial interests or those of my spouse, minor children, general partner, or an organization of which I am an officer, director, trustee, partner, or employee or with which I am negotiating or have an arrangement for future employment."
Draw the obvious conclusions.
There is a very clear conflict of interest which bears further scrutiny.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.