He pointed out that Dick Fuld, former Lehman boss, was a New York Federal Reserve board member until shortly before that bank's collapse. "Nothing has changed and some things have got worse," he said.
JP Morgan is currently being investigated by the FBI and U.S. and U.K. financial regulators over massive losses the bank sustained at its London offices. Johnson said it was inappropriate for him to remain on what is effectively one of JP Morgan's regulators while those investigations continued. More generally he said bankers should not be allowed to sit on boards of their own regulators.
"I don't know any serious country in the world that has such a serious role for bankers in the governance of a central bank. In fact there are a number of non-serious countries that would regard this as unacceptable," he said.
In the Journal Bollinger defended Dimon and his roles. "Jamie, myself, the other members of the board, do not get involved in oversight of the supervisory function of the New York Fed," said Bollinger.
Johnson said supervision wasn't the only area of concern within the Fed. He said important decisions were made in research, an area where Dimon does have influence.
"Mr. Dimon is absolutely in a position of responsibility above key parts of the New York Fed, including the research department," said Johnson.
Dimon's role at the Fed is likely to be a topic of conversation Wednesday when the bank boss appears before the Senate banking committee. Last month three Democratic senators proposed legislation that would bar bankers from serving on the Federal Reserve's 12 regional banks. Dimon's role at the New York Fed was a clear example of "the fox guarding the hen house", said Senator Bernie Sanders.
Intellpuke: You can read this article by Guardian U.S. Business Correspondent Dominic Rushe, reporting from New York City, N.Y., in context here: www.guardian.co.uk/business/2012/jun/11/new-york-fed-defends-jp-morgan-boss