Morning roundup: JP Morgan Re-tools; Europe avoids recession

We’re committed to keeping you and your clients up-to-date with global industry news. Every morning, we offer articles from around the web. Here are some selections:

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JP Morgan board braces for shareholders As JP Morgan Chase rearranges its management suite, shades of 2008 emerge as stories of persistent ignoring of the level of risk the bank was taking on continue to circulate.

As the bank prepared for its annual shareholder meeting today, there are rumblings that investors may ask for chairman and chief executive Jamie Dimon’s resignation, or at least insist he split the dual roles.

It’s also expected the board will face stiff questions about executive pay packages, including whether a recently adopted rule that revokes some pay to departing executives will be applied to the three who stepped down yesterday.

We’ll bring you updates on news from that meeting throughout the day.

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Small solace for Eurozone

Europe avoided falling into technical recession, says numbers compiled yesterday. Strong growth by Germany allowed the zone to post a 0% economic growth rate. Europe’s economic performance was -0.3% in the prior quarter.

Still, there were problems.

Citing prolonged adverse conditions, credit ratings agency Moody’s cut its ratings of 26 Italian banks, causing more trouble for another of Europe’s weaker economies. This happens as four large Spanish banks indicate they’re contemplating a merger.

Observers, bankers and Eurozone leaders, meanwhile, are beginning to question whether the 500 Euro bailout fund will be large enough to cover losses should one of the regions larger economies tank.

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Europe must ‘overwhelm’ banking crisis: Flaherty

Flaherty says Europeans need to tackle their banking crisis with a massive bailout similar the one mounted by the U.S. in 2008—as the recession hit, the Obama administration administered a US$787 billion plan to stabilize the American banking system.

“It’s really up to the wealthy countries of Europe to put up their reserves,” he says. “They need to put up taxpayers’ money and overwhelm the problem once and for all.”

Read: Flaherty says Eurozone gets too much attention

Europe has only implemented Band-Aid solutions to date, in Flaherty’s opinion.

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