Dimon: Kerry Killinger is Full of It

Author:
Publish date:
Updated on

Jamie Dimon had some choice words for Washington Mutual chief Kerry Killinger on JPMorgan’s earnings call today. In short: JD, never one to mince words, disputed Killinger’s assertion at yesterday’s Congressional hearings that a special club of Wall Street execs got bailed out while WaMu got shafted.

“I am unaware of any club,” Dimon said on the call. Michael Cavanagh, JPMorgan’s CFO said the bank was the only bidder for WaMu. Yesterday, Killinger said he was treated unfairly when regulators seized his company and sold it a “bargain” price to Jamie & Co.

“Look you got to ask the regulators, we had nothing to do with the decisions that were made around declaring them insolvent and stuff like that," Dimon said on the call. "Obviously they were having deposit outflow. As you remember when we bought the company we put up $40 billion reserves for writedowns and various assets."

Killinger said yesterday that deposits at WaMu were stable, the bank had more than enough capital and had not been asked by regulators to raise more cash. Still, WaMu had hired Goldman Sachs to help it find more capital or a merger partner, but those efforts were stymied by a parallel auction being conducted by the FDIC.

Killinger maintains WaMu would have made it through the financial crisis had regulators not seized it prematurely.

When asked whether WaMu would have failed if the government had not declared the bank insolvent, Dimon said deposits were flying out the door and co

nditions in mortgage market “just got worse” in the months after it collapsed.

Related

His Trophy Case Full, Jamie Dimon Leaves Competitive Dancing To The Rest Of The Family

[caption id="attachment_73269" align="alignright" width="260" caption="People who *can* dance"][/caption] There are a lot of things Jamie Dimon is very, very good at: building a fortress balance sheet, chatting up reporters in elevators, doing sake bombs, and being appreciably better looking than his peers, to name just a few. In other areas, the JPMorgan CEO has left room for improvement. For example, his dancing skills, about which Dimon's own wife and mother are unsparing in their directness at this point. JPMorgan Chief Executive Officer Jamie Dimon “is a terrible dancer,” his wife, Judy Dimon, said last night at a gala for Ballet Hispanico, of which JPMorgan was the lead sponsor. She then moved her shoulders straight up and down to demonstrate what the 56 year-old leader of the biggest US bank, with $2.27 trillion of assets at year-end, does on the dance floor. Jame Dimon's mom, Themis Dimon, was no more encouraging. Is he a good dancer? "No," she said, shaking her head. Jamie Dimon wasn't present to prove otherwise. “Unfortunately he couldn’t be here tonight because he had another commitment,” said his wife, a Ballet Hispanico board member and the event’s honorary chairman. Too bad. Jamie Dimon missed a good party. His wife, in a slim-fitting coral gown, danced a salsa with New York Giants wide receiver Victor Cruz, reminiscent of his moves in the end zone after scoring a touchdown. Speaking of people who can hold their own on the dance floor? “We like to dance,” Jamie Dimon's father Theodore Dimon, there with his wife and Jamie's twin brother, told Bloomberg. “We dance the fox trot -- it’s nice and easy.” Scene Last Night: Victor Cruz, Dimon for Ballet Hispanico [Bloomberg]