Bove has a newfound love interest: Jamie D. and we hope this will help him heal the Ken Lewis wounds. In a report today, Dick praises JP Morgan's acquisition of some of RBS Sempra's assets, not only because it makes sense business-wise, but mostly because it shows Jamie's guts and manhood.
I believe that Mr. Dimon is demonstrating a courage sorely lacking elsewhere among other leaders of American banks. Bravo!!
Awwww. Although it falls a bit short from one of Bove's best love letters ever, we still feel it. Dick argues that the bank's move is clearly a sign that Jamie doesn't care about the government's proposed rules and/or that he doesn't even believe they will go through, as the Sempra acquisition goes obviously against them. So Dick wonders whether Jamie is "testing the mettle of the legislators who are trying to cripple the U.S. financial system?"
The Administration and Congress want to eliminate "Too Big to Fail." Yet, these acquisitions make America's 2nd largest bank bigger. The Volcker Rule wants to eliminate proprietary trading by banking institutions. Yet, these acquisitions increase JPMorgan's proprietary trading capability. London is taxing trader's incomes. Yet, this is a British trading business. Thus, these acquisitions raise an interesting issue.