1 of 3. Protestors hold signs and pictures of CEO Jamie Dimon as JP Morgan Chase & Co convenes its annual shareholders meeting at the bank's back-office complex in Tampa, Florida, May 15, 2012. 
 
 TAMPA, Florida (Reuters) - The FBI has opened an inquiry into the multibillion-dollar trading losses at JPMorgan Chase, stepping up pressure on the bank after key U.S. agencies said they were looking into high-risk trades that first drew regulators' attention last month. 
 
 The news did little to spook investors, who sent the stock higher Tuesday, or shareholders, who backed embattled Chief Executive Jamie Dimon at the bank's annual shareholders meeting, with a vote rejecting a proposal to split the jobs of CEO and chairman. 
 
 Though investors mostly gave Dimon a pass, pressure mounted on the bank to reclaim some of the millions of dollars it paid to the executives who oversaw the trades. Dimon said JPMorgan would pursue more disciplinary action against those responsible. 
 
 "We will do the right thing. That may well include clawbacks," he told reporters after the annual meeting. 
 
 The timing on any such move was not clear, though, and the various regulatory probes could add complications. A source familiar with the situation said Tuesday that U.S. and UK regulators first raised concerns with senior management in April. 
 
 A separate source familiar with the FBI probe, opened by the agency's New York office, described it as preliminary. The probe was seen in some quarters as a necessary public step, given the ongoing debate in Washington about bank regulation, and one expert said it raised the level of concern around what happened. 
 
 "The FBI looks for evidence of crimes and goes after people who it alleges are criminals. They want to send people to jail. The SEC pursues all sorts of wrongdoing, imposes fines and is half as scary as the FBI," said Erik Gordon, a professor in the law and business schools at the University of Michigan. 
 
 The bank's trading losses have also drawn the attention of the U.S. Securities and Exchange Commission and the Federal Reserve, both of which have opened inquiries. 
 
 After two trading days of heavy losses, JPMorgan shares rose 1.3 percent to close at $36.24. The stock is down more than 11 percent since the trading losses were disclosed, wiping out slightly more than $17 billion of market capitalization. 
 
 "It affects my opinion of the entire financial industry," said Dennis Hong, principal with Altimeter Capital, a hedge fund that manages about $250 million. "It's really shocking because JPMorgan has been known as the most conservative in terms of managing their business risk. They may be losing their way." 
 
 AFFIRMS 'CASE FOR ... REFORM' 
 
 In Washington, U.S. Treasury Secretary Timothy Geithner said JPMorgan's losses strengthened the case for reform. 
 
 "I think this failure of risk management is just a very powerful case for ... financial reform," Geithner told an event sponsored by the Peterson Foundation. "The test of reform is not whether you can prevent banks from making mistakes ... the test of reform should be: 'Do those mistakes put at risk the broader economy, the financial system or the taxpayer?'" 
 
 Larry Summers, Treasury secretary in the last years of the Clinton administration, said JPMorgan's loss strengthened the case for stronger capital requirements at banks. 
 
 "I think that whatever one thought about how large a safety buffer was necessary 10 days ago, it seems to me that in light of what has happened one would tend to have a bias towards larger safety buffers, larger capital requirements, larger levels of liquidity," Summers said in an interview for the Freeland File show on Reuters.com. 
 
 Congress meanwhile ratcheted up its own response to JPMorgan's trading blunder, which comes as policymakers are finalizing new rules for the bank industry. 
 
 "I would suggest that JPMorgan take their business to Las Vegas because it's just a gamble," Senate Majority Leader Harry Reid, a Democrat who represents Nevada, told reporters. 
 
 Congressional Republicans who have been critical of the 2010 Dodd-Frank financial oversight law took a cautious approach in addressing the still-unfolding scandal. 
 
 Senator Richard Shelby, the top Republican on Senate Banking Committee, wants a hearing held with Dimon and regulators to get answers, his spokesman said. Congressman Frank Lucas, chairman of the House Agriculture Committee, said he would delay a hearing on bills to rein in and clarify swaps regulation, citing the JPMorgan trading loss. 
 
 CLAWBACKS 
 
 New York City Comptroller John Liu, who oversees the city's $400 million stake in JPMorgan, joined those calling for a "clawback" from executives responsible for the trading losses, including Ina Drew, chief of the hedging unit in question. 
 
 Drew, who announced her retirement on Monday, earned more than $15 million in each of the last two years and was potentially eligible to retain more than $14 million in unvested stock awards after leaving. Drew did not return messages for comment left at her New Jersey home on Tuesday. 
 
 In its 2011 annual report, JPMorgan said its stock-based compensation awards were subject to clawback provisions. It can cancel unvested awards or require that the value of distributed shares be repaid when "the employee engages in conduct that causes material financial or reputational harm to the firm or its business activities," according to its proxy filing. 
 
 "We don't know the facts and culpability, but it appears she (Drew) did have a responsibility here along with a number of others," Sheila Bair, former chairman of the Federal Deposit Insurance Corp, said in an interview with Reuters Insider. "Clearly, the whole purpose of clawbacks is if you make a bad bet that results in losses, compensation should be clawed back." 
 
 SPLIT PROPOSAL REJECTED 
 
 While regulators probe the losses, most shareholders at the brief annual meeting seemed more concerned with the proposal to split the roles of chairman and CEO. 
 
 That proposal, which was nonbinding, received 40.1 percent of the votes cast in favor. Some 44 percent of AT&T; Inc shareholders and 46 percent of Honeywell International Inc shareholders voted to separate the roles at their companies in meetings held last month. 
 
 "Obviously, all the media attention, all the political yammering of the past week, undoubtedly had some influence on people who had not voted up to that point," said Marshall Front, chairman of investment manager Front Barnett Associates in Chicago, whose firm voted against the proposal. 
 
 Protests outside the annual meeting were relatively limited. Half a dozen Occupy Tampa protesters did media interviews and occasionally chanted, "hey hey ho ho, big banks have got to go." 
 
 Nonetheless, retail shareholders expressed incredulity at the size of the losses. 
 
 "I am amazed that they think $2 billion is a bump in the road," said A. Reihl, an 85-year-old shareholder who said she has owned the stock for more than a decade. "This is not the time to be taking risk." 
 
 Father Seamus Finn of the Washington-based Interfaith Center on Corporate Responsibility described the outcome of the meeting as "pretty poor." 
 
 "I don't think we got any more clarity out of Mr. Dimon about what he got out of these recent experiences and what they're going to do," he said. 
 
 (Reporting by David Henry and Barbara Liston in Tampa, Ross Kerber, Jim Finkle and Ben Berkowitz in Boston, Jed Horowitz, David Randall, Dan Wilchins, Basil Katz, Emily Flitter and Rhonda Schaffler in New York, Dave Clarke and Susan Cornwell in Washington and Sinead Cruise in London; Writing by Ben Berkowitz; Editing by Alwyn Scott, David Holmes and Steve Orlofsky) ||||| The CEO of JPMorgan Chase survived a shareholder push Tuesday to strip him of the title of chairman of the board, five days after he disclosed a $2 billion trading loss by the bank. 
 
 Hillsborough Sheriff deputies patrol outside the gate of JPMorgan Chase annual stockholders meeting held Tuesday, May 15, 2012, in Tampa, Fla. JPMorgan Chase CEO Jamie Dimon will speak to shareholders... (Associated Press) 
 
 Protestors hold signs outside the gate of JP Morgan Chase annual stockholders meeting held Tuesday, May 15, 2012, in Tampa, Fla. JPMorgan Chase CEO Jamie Dimon, facing shareholders five days after the... (Associated Press) 
 
 A poster of JPMorgan Chase CEO Jamie Dimon is covered with eggs thrown by protesters, outside the gate of JP Morgan Chase annual stockholders meeting, Tuesday, May 15, 2012, in Tampa, Fla. JPMorgan Chase... (Associated Press) 
 
 Hillsborough Sheriff deputy patrols outside the gate of JP Morgan Chase annual stockholders meeting held Tuesday, May 15, 2012, in Tampa, Fla. JPMorgan Chase CEO Jamie Dimon will speak to shareholders... (Associated Press) 
 
 An employee checks in outside the gate of JPMorgan Chase annual stockholders meeting held Tuesday, May 15, 2012, in Tampa, Fla. JPMorgan Chase CEO Jamie Dimon will speak to shareholders five days after... (Associated Press) 
 
 CEO Jamie Dimon also won a shareholder endorsement of his pay package from last year, which totaled $23 million, according to an Associated Press analysis of regulatory filings. 
 
 Dimon, unusually subdued, told shareholders at the JPMorgan annual meeting that the company's mistakes were "self-inflicted." Speaking with reporters later, he added: "The buck always stops with me." 
 
 Most of the shareholder ballots were cast in the weeks before Dimon revealed the trading loss. 
 
 His pay package passed with 91 percent of the vote. The vote to strip him of the chairman's title won only 40 percent support. The bank did not announce separate results from before and after the loss was revealed. 
 
 Dimon was confronted at the meeting by shareholders upset about the trading loss, which has rattled investor confidence in the bank and complicated JPMorgan's efforts to fight tougher regulation of Wall Street. 
 
 Rev. Seamus Finn, representing shareholders from the Catholic organization Missionary Oblates of Mary Immaculate, said that investors had heard Dimon apologize before for the foreclosure crisis and other problems. 
 
 "We heard the same refrain: We have learned from our mistakes. This will never be allowed to happen again," Finn said. "I can't help wondering if you are listening." 
 
 Lisa Lindsley, director of capital strategies for an influential union of public employees that is also a major JPMorgan shareholder, said independent board leadership was in shareholders' best interest. 
 
 "An all-powerful CEO is his own boss," she said. "Looking for an infallible CEO is a fool's errand." 
 
 Investors have pummeled JPMorgan's stock price since the loss was revealed. The stock lost 12 percent in two trading days and lost almost $20 billion in market value. It bounced back on Tuesday, rising 3 percent. 
 
 Dimon said he did not expect the trading loss to jeopardize JPMorgan's quarterly stock dividend, which is 30 cents per share. 
 
 There was a heavy police presence at the meeting, in an office park east of downtown Tampa. Protesters were there as well, including some who threw eggs at a poster with Dimon's picture on it. 
 
 "We wanted to let Jamie Dimon know how we feel about what big banks have done to our economy," said Marilyn Lyday, a member of the protest group Occupy Orlando. 
 
 Dimon got something of a vote of confidence from President Barack Obama, who appeared on ABC's "The View" for an episode airing Tuesday. Obama used the appearance to press for tighter regulation of Wall Street. 
 
 "JPMorgan is one of the best-managed banks there is," the president said. "Jamie Dimon, the head of it, is one of the smartest bankers we got, and they still lost $2 billion and counting." 
 
 Obama said the bank was "making bets" in the market for the complex financial instruments known as derivatives. Dimon has said the bank was hedging against financial risk. 
 
 A part of the 2010 financial overhaul legislation known as the Volcker rule would restrict banks from some trading for their own profit. Dimon and critics of the industry have disagreed over whether JPMorgan's trading would have violated that rule. 
 
 In Washington, Treasury Secretary Timothy Geithner said JPMorgan's trading loss strengthens the case for tougher rules on financial institutions, as regulators continue writing rules from the 2010 law. 
 
 Geithner said that the Federal Reserve, the Securities and Exchange Commission and the Obama administration are "going to take a very careful look" at the JPMorgan incident as they implement the rules. 
 
 "I'm very confident that we're going to be able to make sure those come out as tough and effective as they need to be," Geithner said. "And I think this episode helps make the case, frankly." 
 
 At the annual meeting for the investment bank Morgan Stanley, which took place Tuesday in upstate New York, CEO James Gorman appeared to allude to the JPMorgan trading loss when he said: "Events of the last few days remind us that risk levels remain high in the global markets." 
 
 He noted twice that Morgan Stanley has jettisoned or is in the process of dumping all of its businesses that do proprietary trading, or trading for the bank's own profit. 
 
 Gorman also said, unprompted, that the bank maintains the right to take back pay from executives who act improperly. Gorman was confronted by shouting protesters who said the loss at JPMorgan was proof that banks are out of touch with their customers. 
 
 On Monday, Ina Drew, JPMorgan's chief investment officer and one of the highest-ranking women on Wall Street, left the bank. Drew oversaw the trading group responsible for the $2 billion loss. 
 
 ___ 
 
 Pallavi Gogoi reported from New York. AP Business Writer Christina Rexrode contributed from New York and Associated Press writer Andrew Taylor from Washington. ||||| Stock Chart for JPMorgan Chase & Co (JPM) 
 
 JPMorgan Chase & Co. (JPM), the biggest U.S. bank, will consider reclaiming incentive pay from employees including former Chief Investment Officer Ina Drew after her unit had a $2 billion trading loss, said two senior executives. 
 
 The lender can cancel stock awards or demand they be repaid if an employee “engages in conduct that causes material financial or reputational harm,” JPMorgan said in its annual proxy statement. The company will claw back pay if it’s appropriate, said one of the executives, who asked not to be identified because no decisions have been made. 
 
 The incident, which led to Drew’s retirement yesterday, may test JPMorgan’s clawback policy amid mounting investor criticism over Wall Street pay practices and as regulators investigate the trades. Chief Executive Officer Jamie Dimon said the strategy that led to the loss was “poorly executed and poorly monitored” and that it gave ammunition to proponents of stricter bank regulation. 
 
 “The political environment is very sensitive right now and this couldn’t have come at a worse time,” said David Knutson, a credit analyst in Chicago with Legal & General Investment Management, which owns JPMorgan debt. “I can see how pressure from regulators could result in JPMorgan attempting to exercise a clawback.” 
 
 ‘Every Single Dollar’ 
 
 New York City Comptroller John Liu said that JPMorgan should tell shareholders it will “aggressively claw back every single dollar possible from the executives responsible for the $2 billion loss,” according to a statement today. 
 
 “Doing so will send a clear message to senior management that anyone who recklessly gambles with shareholder money is jeopardizing long-term value and will be held accountable,” Liu said in the statement. 
 
 JPMorgan’s executive-compensation plan won the approval of 91.5 percent of shareholders today in a non-binding advisory vote at the company’s annual meeting in Tampa, Florida. 
 
 Drew, 55, received $14 million in compensation for 2011, including $7.1 million in restricted stock, a $4.7 million cash bonus and $750,000 salary, according to the proxy. Her pay over the past two years averaged $1.2 million a month. After three decades at the company, she was replaced yesterday by Matt Zames, co-head of global fixed income at the investment bank. 
 
 ‘Gross Negligence’ 
 
 Stock awards can be canceled or repaid if a member of the operating committee, which included Drew, “improperly or with gross negligence” fails to identify risk, JPMorgan said in the proxy. Committee members also can have 2012 stock awards canceled if Dimon deems their performance was “unsatisfactory for a sustained period of time,” according to the proxy. 
 
 Drew didn’t respond to phone and e-mail messages seeking comment. Jennifer Zuccarelli, a bank spokeswoman, declined to comment. 
 
 JPMorgan’s stock declined 9.3 percent the day after Dimon disclosed the loss on May 10, the biggest drop since August. The shares slid 3.2 percent yesterday to $35.79 in New York. 
 
 The trading loss has hurt JPMorgan’s reputation, Dimon said in a conference call last week. It “puts egg on our face and we deserve any criticism we get,” he said. 
 
 More shareholders are voting to reject compensation packages for senior executives as Europe’s sovereign-debt crisis and stagnating economic growth squeeze bank profits. Citigroup Inc. shareholders last month rejected compensation for executives including CEO Vikram Pandit in a non-binding vote after the New York-based firm’s shares plunged 44 percent last year. 
 
 Morgan Stanley 
 
 Morgan Stanley (MS), owner of the world’s biggest brokerage, instituted clawbacks in 2009 that allow the New York-based bank to take back compensation if an employee’s conduct hurts the firm in the years after it was paid. UBS AG (UBSN) said in 2010 that its net loss a year earlier would trigger a bonus clawback for the first time, depriving bankers of 300 million Swiss francs ($321 million) of deferred pay they were due to receive. 
 
 JPMorgan will have to weigh the trading loss against Drew’s tenure at the firm and any profit her unit generated before this year, said Paul Sorbera, president of executive search firm Alliance Consulting in New York. 
 
 The bank’s corporate division, under which she reported, earned a peak of $3.7 billion in 2009. The bank doesn’t break out results for the chief investment office. Dimon, upon announcing Drew’s retirement, called her a “great partner” who has made “vast contributions” to the firm, according to a statement yesterday. 
 
 “There are so many things she’s entitled to in the organization -- as a long-term employee, as a managing director, as woman in the organization -- they want to take care of her, they want to do the right thing by her,” Sorbera said. “The bank will be in a position where they probably could go one way or the other.” 
 
 To contact the reporters on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net; Donal Griffin in New York at dgriffin10@bloomberg.net; Dawn Kopecki in New York at dkopecki@bloomberg.net 
 
 To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net
– Maybe Jamie Dimon will go on trial after all? That's getting way ahead of things, but the Justice Department has opened an inquiry into the JPMorgan trading scandal, sources tell the Wall Street Journal. It's currently unclear what legal violations it's looking into, but the probe will be separate from the SEC's investigation, which is looking at the company's accounting and disclosures. But there is good news for Dimon: Shareholders today rejected a motion to oust him from his post as chairman, though there was serious support for it; 40.1% of votes were cast in favor of splitting up the jobs of chairman and CEO, Reuters reports. The AP adds that he also won a shareholder endorsement of his 2011 $23 million pay package, but notes that most of the shareholder ballots were cast weeks ago.