Jamie Dimon

  • 12 Apr 2013 at 2:48 PM
  • Banks

J.P. Morgan Isn’t Doing This For Fun You Know

Yesterday JPMorgan research released a 328 page report arguing that global tier 1 investment banks were “un-investable,” and today JPMorgan reported record first-quarter earnings of $1.59 per share versus $1.40 consensus, so I guess it sort of looks like there’s a disconnect. But not really? Here are the analysts on banking regulation:

We believe Tier I IBs are un-investable at the moment and the right time to make a switch into Tier I IBs would be if we get more clarity on regulations providing us comfort around the ROE potential of Tier I IBs or we see IBs having to spin-off their businesses leading to capital return to shareholders. We believe Tier I IBs will continue to remain more exposed to the IB regulatory changes as they try to “defend their turf” while Tier II IBs have the option to step back more aggressively.

Jamie Dimon, meanwhile, responded to analyst questions this morning by more or less begging the analysts themselves to call their congresspeople and defend JPMorgan’s turf, arguing that banks are safer than ever, that JPMorgan’s size and scale and universality provides services that clients want and is good for the world, and that “I hope at one point we declare victory and stop eating our young.”1

The analyst report is a fascinating bit of business. The claim is that global investment banking – by which they mean of course FICC trading – will see market share move toward top-tier banks, driven mainly by the commoditization of the FICC business with clearing and greater price transparency around derivatives, as well as higher capital requirements and more complex and Balkanized regulation around trading activities. The result: Read more »

  • 10 Apr 2013 at 6:17 PM

Jamie Dimon Is (Still) Sorry

JP Morgan & Co.’s chairman and chief executive officer, James Dimon, renewed his apologies to shareholders for last year’s multibillion-dollar trading fiasco, and an investor that has pushed for corporate-governance changes at large financial firms said it would focus this proxy season on changing the bank’s board…The 57-year-old Mr. Dimon called the “London Whale” trading losses, which cost the company more than $6 billion and led to the departure of a top aide to the CEO, “a real kick in the teeth” and “the stupidest and most embarrassing situation I have ever been a part of.” Five pages of Mr. Dimon’s 30-page annual letter to shareholders, released Wednesday, outlined “lessons learned” from the incident, which damaged Mr. Dimon’s standing as the best risk manager on Wall Street. [WSJ]

Jamie Dimon, chairman and chief executive officer of JPMorgan Chase, bought a commercial co-op unit in the base of his Manhattan apartment building for $2.05 million…The sellers of the commercial co-op were listed as Stephen Marks and George Ellis, cardiologists whose practice was located at the address. The unit is one of 11 on the ground floor of the building, located between 93rd and 94th Streets. “They’re professional offices” said Jonathan Miller, president of New York-based appraiser Miller Samuel Inc. “Most of the time it’s a doctor, a psychologist, any type of medical practice. It’s not uncommon for it to be a place to write a book, or just a place to work, or have a private office.” Maintenance is $6,663 a month for the 2,577-square-foot (239-square-meter) unit, which has 12 rooms and two half-baths. [Bloomberg]

If you’d like to have at least eight federal agencies—and the Justice Department—investigating your firm, consider this approach. Read more »

Carl Levin Does Not Think Much Of Jamie Dimon

And Joe Nocera loves him for it. Read more »

  • 15 Mar 2013 at 11:46 AM

Senate Subcommittee Feasting On Whale Today

When I got the Senate Permanent Subcommittee on Investigations report on the London Whale last night, I did what any sensible human would do: I ctrl-F’ed for my name and the names of my friends and enemies, gloated briefly, and then set to work rationalizing not reading the rest of it. After all, it’s ridiculous for the Senate to investigate a basically legitimate trade that, though it lost some money, did nothing to destabilize JPMorgan or the financial system as a whole. And we’ve heard all the important Whale stuff before, including in JPMorgan’s own Whale autopsy, and even then it was old news.

But then I started skimming the executive summary and after underlining every sentence in the first ten pages I figured I’d have to give it a closer look. It’s an amazing, horrifying read.

What was the Whale up to? I don’t think you’ll get a better explanation than this, from a January 2012 presentation by the Whale himself, Bruno Iksil (page 74):

Mr. Iksil’s presentation then proposed executing “the trades that make sense.” Specifically, it proposed:

“The trades that make sense: Read more »

  • 05 Mar 2013 at 6:50 PM

Person Sends Email To Jamie Dimon

We* don’t really find it particularly amusing amusing or post-worthy that a Jefferies employee misguidedly put Jamie Dimon on an email about a working group list but judging by the number of people who’ve sent it to us, this is the height of banking humor, so here you go: Read more »