Amid the storm, J.P. Morgan continues to prosper in some of its core businesses. The bank increased deposits by 10.1% in the Federal Deposit Insurance Corp.’s survey of the 12 months ending in June, nearly double the industry average of 5.4%. Mr. Dimon has told audiences the bank is staying focused on customers, many of whom are concerned most about interest rates and fees. “Wow,” said Dixie Klamfoth, a customer in Circleville, Ohio, on learning J.P. Morgan is on the verge of receiving a historic fine from the Justice Department. She was surprised, she said in a phone interview, because “I feel that they have been a reputable company.” But Ms. Klamfoth said she has been satisfied with her Chase checking account, savings account and credit card. “I will be watching to see if they pass those fines onto me in the way of fees,” she said. “The moment they do, I will no longer do business with them.” [WSJ]
JP Morgan Better Not Even Think About Passing One Cent Of That Fine Onto Checking Account Customers, Else It’s Lights Out: Checking Account Customer Dixie KlamfothBy Bess Levin
Bank Reform Bitch/ Spandex-Clad Roller Girl/ Better Banking Butterfly/ Ethical Fiscal Fairy Pays Jamie Dimon A House CallBy Bess Levin
Her dispatch to DB re: JD, whose likeness she has slapped the ass of in the past: “After the Ethical Fiscal Fairy heard Jamie Dimon grumbling to insiders about intolerable regulatory pressure, EFF paid the banker a visit last Thursday night at his residence. Sprinkling some fairy dust outside the urban estate, EFF put a benevolent spell on Dimon from afar, hoping to kindly knock some common sense into him. And perhaps the fairy dust is working — as of last week, JPMorgan made the striking announcement to exit the physical commodities markets. EFF is hopeful that this is a turn for the better, but with so many reported scandals, one can never be too sure. Curious neighbors that approached EFF last week told her that ‘Mr. Dimon is really a nice guy.’ Even so, said EFF, nice doesn’t cut it. Mr. Dimon needs to be held accountable and appropriately punished either under Sarbanes Oxley, or by the Bank Reform Bitch, who on occasion has given the naughty Mr. Dimon very public spankings. Perhaps a combination of spankings and a healthy dose of fairy ethics would be the best approach.” Read more »
One of the pleasures of every JPMorgan quarterly earnings call is hearing Jamie Dimon’s, and now Marianne Lake’s, authoritative-sounding pronouncements on proposed regulations. You sometimes get the sense that regulations can’t be adopted without Dimon’s approval, so his views on these calls provide some sort of indicator of which of the proposals might actually happen. Plus, general amusing orneriness.
So how’d everyone do? Well, they think Nouveau Glass-Steagall is pretty silly, for one thing: in response to an analyst question about it, Lake said “we don’t spend much time thinking about it.”1 Oof! Get outta here with your Glass-Steagalls.
But the theme of the call was mostly “could you tell us more about your leverage ratio?” Here, JPMorgan is not so fond of the new Basel III leverage ratio proposals. The earnings deck walks through how JPMorgan will comply with the new U.S. leverage ratio rules, but it does not do any math on the effects of the new Basel proposals to do creepy things like disallow derivatives collateral netting. When asked to quantify the leverage under those proposals, Lake and Dimon declined, saying that there are “fundamental problems” with those proposals. So they have chosen to ignore them and, presumably, they will go away. Read more »
The House of Morgan is about to have to have some pissed off people in upstate New York and the west coast of Florida on its hands. Read more »