What could Jamie Dimon have been thinking? You'd think that with all the financial pain inflicted on Wall Street and investors by mismanagement of our investment banks, the chief of JP Morgan Chase would be cautious of calling for the Securities and Exchange Commission to haul out the handcuffs and fire-up the perp walks.
Instead, Dimon took to the Charlie Rose show last night to call for investigations and jail terms in connection with the collapse of Bear Stearns. He even insisted that those jail terms should not be brief.
Who does he want to jail? Not those responsible for the financial losses that have forced the creation of extraordinary things like emergency rate cuts and special Federal Reserve borrowing windows for brokerages. Instead, he's demanding the jailing of anyone who "knowingly starts a rumor or passes on a rumor."
This all springs from the unsubstantiated claim that certain hedge funds shorted Bear Stearns and then conspired to spread rumors that brought it down. How does Dimon know that this conspiracy occurred? "Where there's smoke, there's fire," Dimon told Rose. So we have a very simple question for Mr. Dimon: should people who spread rumors about alleged short-selling conspiracies also be investigated and jailed?
Or are only the fragile titans of Wall Street entitled to that kind of protection?
SEC should investigate Bear collapse: JP Morgan CEO [Reuters]
Posted by guest , Jul 08, 2008 10:44AM
carney's just a little on edge. Seeing as how rumors are his livelihood.
Posted by guest , Jul 08, 2008 10:45AM
Gives new meaning to the term "conviction sell list".
Posted by guest , Jul 08, 2008 11:48AM
Jamie Dimon is getting a little punchy. No one has come out and called him a patriot recently, and it's boring watching you stock go down. Jamie, don't channel your inner Jimmy Cayne and look for enemies where they may not exist. Does anyone have an idea about how Jamie can liven things up without losing his credibility? He may just have to take those dueling pistols out to Central Park for a spin. ("Hamilton, I'm afraid I'm going to have to call you on that!" "No, Burr, I'm calling you, by God!" etc.) For Jamie's well-being, can an office assistant make sure they remain unloaded?
Posted by guest , Jul 08, 2008 11:52AM
Alan Greenspan and Ben Bernanke should be put in jail. And that's being kind to them. In the old days they would have been drawn and quartered. Where's the outrage?
Posted by guest , Jul 08, 2008 12:56PM
Carney, this poor guy, Jamie Dimon was interrupted during his a birthday party because of Bear's rumors. Have you ever felt the torment of being interrupted on your private cell phone by a CEO during a party? He should be allowed to seek whatever blood vengeance he needs to so he can get over the trauma.
Posted by guest , Jul 08, 2008 3:16PM
This is an increasingly common tactic: when business condition grow ever more difficult and the best executive's well-laid plans go astray, blame some outside source for your difficulties (short sellers, "speculators", unspecified consipracies). Next thing you know Dimon's going to go on Larry King and rant about "sith lords". I never though I'd put Dimon in the same category as that crazed buffoon who runs Overshlock.com ("It's all about the O" all right: obfuscation). I guess Dimon is worried about his future. I guess things must be far, far worse at Bearpoint Morgan than he's aknowledged.
That's just my opinion; I wouldn't want to start a rumor or anything.