the return of toy charts

JPMorgan had a … quarter, whatever, go read about it. Top and bottom-line beats with revs up and net income down y/o/y. And JPMorgan’s investment bank had a … you’d have to say pretty good quarter, with fees still not where I’d like to see them as a former fee-getting banker but with FICC bouncing back nicely from last quarter.

But who cares about the investment bank? Turns out we’ve been looking at the wrong JPMorgan all along, per this sweet Bloomberg story that examines the London Whale in his native ecosystem:

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has transformed the bank’s chief investment office in the past five years, increasing the size and risk of its speculative bets, according to five former executives with direct knowledge of the changes.

Achilles Macris, hired in 2006 as the CIO’s top executive in London, led an expansion into corporate and mortgage-debt investments with a mandate to generate profits for the New York- based bank, three of the former employees said. Dimon, 56, closely supervised the shift from the CIO’s previous focus on protecting JPMorgan from risks inherent in its banking business, such as interest-rate and currency movements, they said.

Some of Macris’s bets are now so large that JPMorgan probably can’t unwind them without losing money or roiling financial markets, the former executives said, based on knowledge gleaned from people inside the bank and dealers at other firms.

Har har har. Much of my admiration for Jamie Dimon comes from the fact that JPMorgan more or less does what Goldman is always accused of doing, and more or less gets away with it, so it’s nice to have proof that JPMorgan is Just A Giant Hedge Fund Masquerading As A Bank. And the story is juicy; I loved the description of Macris as “always ha[ving] off-the-wall ideas, but in hindsight sort of smart ideas,” which golly I have met people like that and I wouldn’t necessarily trust them with all my cash. Read more »