[ By Howard Haykin ] [Opening Act. Tampa, Florida, May 15, 2012] JPMorgan Chase - the largest and most profitable bank in the world - brought its annual shareholders meeting to town, along with its three ring circus featuring a $2.3 billion trading debacle, favorite son Jamie Dimon who had the unenviable task of having to explain away an unfortunate and an embarrassing series of bank errors and misstatements. You say our circus analogy is unfair?  Well, in fact, it is all too close to home. Back in January, Ringling Brothers - the largest and most profitable animal circus in the world –  brought its traveling circus to Tampa, where they were met by protests from the animal rights group People for the Ethical Treatment of Animals (PETA).  The group said Ringling Brothers routinely forces sick and arthritic elephants to perform in shows.  To make its point, the protestors were lead to the center of town by an "elephant" on crutches wearing a bloody bandage around its head. In any case, ... the meeting was going to be held just days after the bank disclosed a $2 billion trading loss, and JPMorgan Chase CEO Jamie Dimon would face his bank's shareholders.  Mr. Dimon, who had successfully steered the big bank through the worst of the financial crisis, and sidestepped much of the criticism leveled at other bank chiefs, now would face an inspired anti-banking public and disappointed shareholders who had seen their shares in JPMorgan drop by more than 10% since the bank revealed the losses. The meeting would be the first shot investors had to confront Mr. Dimon about the losses that stemmed from a bad bet.  Shareholders have recently raised questions about whether JPMorgan should strip Mr. Dimon of his title as bank chairman and whether the firm should take back pay from those executives at the center of the trading losses.  Two proxy advisory firms have already weighed in with recommendations that the bank appoint an independent board chair. Some large investors also are demanding that JPMorgan shake up its risk committee in an effort to identify the breakdown that led to the disastrous trading strategy executed by the chief investment office, the group responsible for the losses.  In recent years, risk managers and some senior investment bankers raised red flags about the bank’s growing appetite for risk, warnings that were ignored or dismissed. [Act Two.  DealBook is on hand to record the event - a live blog.] 11:35 A.M. |Clawbacks Possible At the end of the meeting, Mr. Dimon said, "We will do the right thing," adding "that may include clawbacks."  That’s all for the live blog. 11:26 A.M. |Dividend Won’t Change Assuring shareholders that the trading loss would not cause the bank to reduce its dividend, Mr. Dimon said JPMorgan Chase was strong.  The proposal to split the role of chairman and chief executive received the support of 41% of the shareholders. 11:22 A.M. |‘Simple Regulation’ Reiterating that he supported some regulation, Mr. Dimon said he believed in "good, strong, simple regulation." 11:20 A.M. |A Little Humor One shareholder struck a note of levity.  "You are not the worst service out there," the shareholder said.  "Bank of America has risen to that level." The comment drew chuckles from the otherwise stern crowd. 11:16 a.m. |Dual Role Mr. Dimon defends his role as both chairman and chief executive. "So far we have determined there will be one chairman and CEO," Mr. Dimon said, adding that the board had 11 members and that those members provided a check on his influence. 11:03 a.m. |Open Forum Shareholders are invited to speak.  The first investor asks whether Mr. Dimon, in light of the trading loss, has changed his opinion of the Volcker Rule. “Do you still believe in the company’s ability to self regulate?” 11:00 a.m. |‘Self-Inflicted’ Wounds Mr. Dimon opened with a discussion of the trading loss.  He repeated again that mistakes  "were self-inflicted."  He said "it’s appropriate that we bring in new management." On Monday, the bank announced that Matthew Zames would succeed Ina Drew as the head of the chief investment office. 10:55 a.m. |Taking Aim at Lobbying Efforts The Domini Social Equity Fund, a mutual fund, cited the $2 billion trading loss as a reason why the board should approve a proposal demanding that the bank provide greater transparency about the payments JPMorgan makes in lobbying. A representative said such lobbying might have been used to sway lawmakers to water down the Volcker Rule, which would ban banks from making bets with their own money. 10:50 a.m. |Help for Homeowners Citing the need for greater aid for homeowners struggling under the glut of debt, the Board of Pensions of the Presbyterian Church introduced a proposal to ensure more mortgages were modified. The board recommended against the proposal. 10:47 a.m. |Conflicts of Interest The first shareholder proposal hits on a question that has been gaining steam ahead of the meeting. The American Federation of State, County and Municipal Employees proposed that Mr. Dimon resign his post as chairman and that JPMorgan set up an independent chair. Arguing for that position, the union said that it boiled down to preventing "an inherent conflict of interest" where "Mr. Dimon is monitoring his own performance." The board recommended against the proposal. 10:40 a.m. |Revamping Regulation In the wake of the financial crisis, Mr. Dimon has been a vocal opponent of too much regulation that might choke off banks’ profits or undermine their ability to hedge their own risk. But JPMorgan’s big trading loss has emboldened reformers’ calls for greater restrictions, even if regulators are still mixed on the issue. "We are not against new regulations," Mr. Dimon said on Tuesday. But he did not go so far as to agree with the Volcker Rule. As he said on a conference call with analysts last week, Mr. Dimon reiterated on Tuesday that the ill-fated trade had morphed into something that violated "our own principles." [Dealbook, 5/15/12].