[ by Melanie Gretchen ]

Before running out and spreading false rumors about Goldman Sachs and JPMorgan Chase having merged and now operating under the same management team, let's set the record straight.  What the firms have in common is that the roles of Chairman and CEO at each firm are held by a single individual.  And those individuals - Lloyd Blankfein and Jamie Dimon - bristle at the thought of outsiders suggesting that the firms would be better off having the two positions separated and delegated to two persons.   [C-I Note:  Something like the old saying that "Two heads are better than one."]

Goldman Sachs vs. Its Shareholders.   Last year, Goldman Sachs gave in to American Federation of State, County and Municipal Employees (AFSCME), a shareholder activist group, by naming a lead outside director.  This year, the New York-based investment bank is trying to block a motion proposed by another shareholder - CtW Investment Group - from appearing on the proxy ballot.  CtW, which works with pensions sponsored by a group of unions with 5.5 million members and $200 billion in assets - proposed in a letter dated 12/31/12, that a vote be taken on a proposal that Goldman Sachs have an independent chairman who hasn't been an executive officer of the firm and hasn't had other affiliations or connections with the firm.

Goldman Sachs, in turn, appealed to the SEC in January, seeking approval to exclude the CtW proposal from its 2013 proxy, on the grounds that it is "vague."  Goldman has successfully evaded similar proposals in the past  - the most recent one being last year, after 2 had been submitted in 2010.  Until the appointment of the lead outside director, James Schiro, Goldman had kept its power on the board concentrated.

JPMorgan vs. Its Shareholders.   Similarly, JPMorgan's Chief Executive sees no reason to relinquish his dual control.  Despite the London Whale's $6 billion loss, Jamie Dimon has balked at efforts for change by AFSCME, the granddaddy of public employee unions, as well as by NYC and Connecticut pension funds. And it probably would be taken as an insult to injury to Mr. Dimon, after having his compensation for 2012 cut in half.

[ C-I Note:  There appears to be one sizable difference between Jamie Dimon and Lloyd Blankfein, and that pertains to public relations.  Whereas Lloyd Blankfein was a "Walking PR Disaster" from 2007 to, say, 2010, Jamie Dimon assumed that ignominious title in 2012.]

For further details, go to [WSJ, 1/23/13] and [NY Post, 2/21/13].