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If you think Jamie Dimon (JPM) can't end up like Barclays' Bob Diamond, think again, says...
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Saturday, July 14, 2012, 8:25 AM ETIf you think Jamie Dimon (JPM) can't end up like Barclays' Bob Diamond, think again, says Jonathan Weil. The fact that JPMorgan only decided on Thursday to restate Q1 results shows that Dimon still hadn't grasped how internal controls are failing him and the company.
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PS I have screamed for him to go for 2 years. The US is death !
Didn't you see the luv during the Senate grilling !
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Why senate ?
He is not government employee and he is not in baseball business.
He runs company for profit, they run non profit organization with $1T loss.
They don't compete
Bob Diamond ?
Is there appearance of misconduct committed by Jamie D's company
What is in common except letter D in their last name
Remember JPM and it's buddies were brokers not banks ! In order to save them they had to convert into banks so they could receive billions to buy each other up and save the pensions and parachutes !That is what TARP really was about ! Cleary ! Follow the money ! Dimon may be fooling the sheep,but,not the many with a brain !
Usually you and I agree but I need to hop in on this thread as you are spreading the butter liberally.
JPMC was always a bank so let's not confuse them with GS, Merrill, Bear, Lehman, etc. The movement of those surviving players like GS to take on bank charters was directed/encouraged by Geithner, Bernanke and Paulson as they needed to prevent more FS company failures regardless of charter and because many of these players did not have bank charters they could not borrow from the Fed directly or be helped very easily. It was too late for Bear and Lehman but the government was trying to prevent more failures.
Of all the players JPMC had the best balance sheet although BofA was in decent shape although they ruined it by taking on Country Wide. Massively stupid.
Finally JPMC had very little exposure or activity in housing until they were asked to take on Bear and WAMU.
Yessssssssss. And, Dimon is .........................
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big yesssssss can't hide the absence of substance
That was not the way the Congress had negotiated it when Paulson went to them.I forget the bunch of brokers JMP acquired over the years,but, their hands were not clean.
And, even after this 5% move the stock price has been dead money compared to many other symbols over the decade ! That is a fact ! So, JPM for the millions of long term holders has been a poor hold ! Also, the US dollar has devalued as I stated ! So, for most holding JPM for 10 years it's been a lousy investment!
Consider this. I don't live in the US and I have recently used Costa Rica's largest credit union to set up CDs for the great grandkids for there college use. There 5 year CDs as I am trying to time there need. The face rate is 14.25% and by rolling it without monthly payouts the yield is 20%.. The money doubles at 5 years, So, for virtually no risk the money doubles in that time and compare that to owning JPM........ Not ! Not in any way shape or form !
Excuse me,but, I managed client funds for decades and for the risk of owning a stock JPM and at current value has been a horrible hold ! To me this is a fact !
Not speculation !
I understand that the market has been in a horrific down patch,but, the folks who were with my old firm they did not hold on the way down and were put in during the capitulation and have done very well over the last 3 years ! Very well !
There were great stocks over the last decade and even a WMT has added 50% in value while paying a dividend ! Not JPM !
And, you always deserve respect and an answer. The whack jobs who say there is no substance ! NOT ! DL
Anyone taking on a troubled firm in 2008 needed subsidies or they were in fact giving away capital. BAC is the case study with respect to their taking on CW. Borrowing from the Fed if necessary for liquidity is a separate function and issue.
US stocks in general have been dead money for a decade so why bother nit picking on JPM? And the Fed is driving our interest rates here in the US as they try to keep the debt service load of the Federal Government as low as possible.
It is clear to me and many others who follow as well that those takeovers were never about saving the symbols,but, the players controlling those symbols ! The facts are too strong.. Only lamb I saw was Paulson's own brother ! But, who knows what has been done to help him ! DL
My point is that your rhetoric around JPM is that they have unique performance to the downside. That is not valid as compared to peers and the S&P in general. If Dimon should go on performance issues then most all of the public companies have the same issue and they should all go.
I am not sure what you are saying on your second point with respect to "the facts are too strong."
My old firm now has a large bunch as clients and I/we know from horses mouths ! Dimon was major player and saving Lehman was not in GS or JPM's interest. Less pie to split !
"the facts are too strong." That is what my uncle is saying and he/we know first hand ! These are facts we know not suspicions !
I have been in banking almost my entire life and have worked with most of these banks. I have also read a ton of the documents and books that came out afterwards and also talked to people in these FI's. What you are saying does not synch up with all those conversations nor does all of it make business sense.
I can see Dimon and I know Dimon did not want to save Lehman but nobody wanted to save Lehman because they were a bunch of pricks. They gave everyone the finger during the LTC problem years before. Lehman burned those bridges when everyone else needed help and they had no bridge to cross when they needed it.
Bear and Wamu were dumb you know what. AIG bailout was for more than GS by a long shot. AIG was guaranteeing everything for everyone and nobody knew what their total exposure was. And on the other side of the house AIG was insuring peoples' homes and businesses, etc. If AIG would have went down it would have been a spectacular explosion. I can't even summarize the damage it would have been so big.
I understand who & what AIG was all about 100% I also know that the 40 billion was only a third of what AIG received and that was just the spoken amount.That money was never in AIG's hands.It was a direct payment to GS to reduce AIGs debt to GS.. I respect you banking ties and the years there,but,if you don't know about these things then your JUST NOT IN THE KNOW ! That money was directed by the Sec.of the Treasury who had a mega amount of his aka blind trust in his former company. And, we all know how high up he was there. And, we all know all the other Gov.big wigs had mega amounts tied up in GS. Saving AIG as too big to fail was a convenient talking point and now it's the cliche used for anything an everything.
It was b/s then and b/s NOW. Respectfully ......DL
You got me on 70 years but I am not complaining. LOL And I am close to retirement so I have paid my dues and seen a lot.
I spent a lot of my time in NYC in lower Manhattan and Midtown. I am in the flow of these conversations. I have met many of the people at these FI's from staff employees to middle management all the way to the top. I understand money never being handled by AIG they had obligations all over that the US taxpayer was picking up for them in return for equity. Why give them the money to handle they were a mess and close to bankrupt.
The conspiracy theories live on forever and they typically have some thread of truth whether perceived or real and that is what gives them the feel of authenticity to people who want to believe. However when it takes a massive conspiracy putting together enemies on the same page to pull it off and maintain secrecy then it loses weight.
Believe it or not.
By the time that happened the market had climbed 3000 points and who cared We did ! And, that is why I will post until I'm gone..
PS Don't know if you knew Barton Biggs,but,they just said he's gone. He was a good honest egg ! Seeing all the old friends going .. Time sucks ! pura vida,, DL
Don't you go! Hang around a while there are still some good laughs left in this crazy world. Even better if you have family.
I did not know Barton but did see him on TV a number of times. He was easy to listen to as his style was thoughtful and came from a deeper place than most people.
Like I was referring too. Not just the CIO trades.. or Libor issues,but, this one really gets my goat ! The client comes first and JPM was so desperate for the bottom line they steered clients. This comes from the top and this drives home my point. If this suit is successful or they settle many more will come and they should....Just keep saying DL!
This is shocking news, indeed.
Mr. Dimon needs to step up and "take one for the team." How many more folks need to resign at JPM before the man in charge finally takes some responsibility for what is happening under his watch?
How many more folks need to resign at JPM before the man in charge finally takes some responsibility for what is happening under his watch?
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resign is not necessarily means taking responsibility
in some cases, resign meas escaping responsibility
his responsibility is to fire wrong and retain right
and
if he does it not
resign
Ohio is looking to lead class-action taken by Louisiana against JPM. Oregon, Arkansas, and a Swedish pension fund are seeking to join the Louisiana lawsuit.
The next time you read that JPM did not lose investor money in the derivatives loss, think again.
The next time you read that JPM CEO Jamie Dimon is one the best and brightest CEO's in the financial world, think again.
Where is Jon Corzine and where are the class-action lawsuits against MF Global?
The rankings can be found at: http://bit.ly/Nrn5Hk
The three metrics were: Industry adjusted total shareholder return (TSR), Country adjusted TRS, and Change in market capitalisation.
1. Gordon Nixon- Royal Bank of Canada
2. RA Eung Chan- Shinhan Financial- S. Korea
3. Craig Donohoe- CME Group- US
4. David Simon- Simon Property Group- US
5. R. Sridhar- Shriram Financial- India
6. Ronald Hermance, Jr.- Hudson City Bankcorp- US
7. Pete Lowy- Westfield Group- Austrailia
8. Steven Lowy- Westfield Group- Austrailia
9. Alessandro Profumo- Unicredit- Italy
10. Jean-Philippe Thierry- Allianz- France
Here are some suggestions for a replacement for Jamie Dimon. I took the names from INSEAD's global ranking of CEO's. I only focused on the Financial sector for these names. JPM's Jamie Dimon did not crack the top 200. That is correct. In survey that measured three (3) metrics, Mr. Dimon did not make the top 200.
The rankings can be found at: http://bit.ly/Nrn5Hk
The three metrics were: Industry adjusted total shareholder return (TSR), Country adjusted TRS, and Change in market capitalisation.
1. Gordon Nixon- Royal Bank of Canada
coddy: looks Ok
2. RA Eung Chan- Shinhan Financial- S. Korea
coddy: Shinhan Chairman Ra Said to Face Sanction by South Korea's Bank Regulator
3. Craig Donohoe- CME Group- US
coddy: The undoing of CME's Donohue
CME Subpoenaed by Federal Grand Jury, CFTC on MF Global
Donohue said his decision was unrelated to the failure of one of the company’s customers, MF Global Holdings Ltd. (MFGLQ)
coddy:
I did not google 4 through 10
4. David Simon- Simon Property Group- US
5. R. Sridhar- Shriram Financial- India
6. Ronald Hermance, Jr.- Hudson City Bankcorp- US
7. Pete Lowy- Westfield Group- Austrailia
8. Steven Lowy- Westfield Group- Austrailia
9. Alessandro Profumo- Unicredit- Italy
10. Jean-Philippe Thierry- Allianz- France
I simply took a ranking of the top 200 CEO's and listed the top ten in the financial sector. Clearly there are some "questionable" folks, my point was/is: There are people who could replace Jamie Dimon.
If the Board of JPM were to conduct a search for a CEO, they would surely find qualified candidates. I do not believe that JPM is too big to fail, and I do not believe Jamie Dimon is too important to be replaced.
Where is Jon Corzine?
Last I knew Corzine was in the Hamptons. Everyone was trying to avoid him.
I saw the report on The Honorable Jon Corzine summering in the Hamptons. Such a tough life for Mr. Corzine! He looked "tired" according to the report. Must be the weight of making $2B disappear is dragging him down. Back to his chateau in France for the winter and he gets to do it all over again next summer.
Where is Jon Corzine and why is he a free man?
I simply took a ranking of the top 200 CEO's and listed the top ten in the financial sector. Clearly there are some "questionable" folks, my point was/is: There are people who could replace Jamie Dimon.
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and my point is that you did not make your point
however your effort was not completely wasteful
I got feeling the your #3 candidate for JD replacement Craig Donohoe is that person able to answer your "Where is Jon Corzine? " question.
Mr. Mahar said that there were never any names given as to who could replace Jamie Dimon.
I listed ten of the top financial CEO's as rated by INSEAD's Global Rankings of CEOs.
In listing these, I certainly made my point. The uber-smart Mr. Dimon did not show up in the top 200. There are qualified people to replace Jamie Dimon. This is the point. How exactly did I fail in this?
Have a good day.
Where is Jon Corzine?
In listing these, I certainly made my point. The uber-smart Mr. Dimon did not show up in the top 200. There are qualified people to replace Jamie Dimon. This is the point. How exactly did I fail in this?
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yes you failed
you failed to realized a simple fact that in America, which is part of a free world everybody entitled to create their own list(s) even as SA has own lists.
Your target was picked unfair
Your argument was lightweight
Your relentless pursuit of "Where J. Corzine" issue stumbled on this thread
In short you failed to yourself
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2012
Dimon returns as CEO of the Year
For a second consecutive year, James (Jamie) Dimon of ...
http://bit.ly/MiG1qD
If JD can be replaced is not the issue
Yes he can
Everybody is replaceable
Apple, HP and Yahoo all know it
Issue is resulting outcome
INSEAD's Global Ranking of CEO's listed the top 200 based on three metrics which I listed above. Jamie Dimon was not in the top 200. These metrics have nothing to do with popularity.
The issue has everything to do with whether or not Jamie Dimon can be replaced. Mr. Mahar was interested in names, I gave names. You took the time to search the top four of the financial sector.
I will take my lightweight argument and INSEAD's Global Ranking and enjoy my evening. You should too.
I will continue my relentless pursuit of Jon Corzine. The great thing is that you really believe that I am looking for him and actually care where he is located in the world. You miss this point too.
Where is Jon Corzine? (come on, a smart guy like you can figure this out)
The great thing is that you really believe that I am looking for him and actually care where he is located in the world. You miss this point too.
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in other words it was figure of speech on your part
and you believe that I missed it, and I believed it
you are too naive
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bzw
difference between globally and locally is globally they are more cynically
There are essentially three aspects to how you price the trade. Firstly, there is the midmarket on the CDS (which is an observable), second there is the correlation between the longs and the shorts and thirdly, there is the spread reserve needed for a positions of this size. The biggest unknown, and one which is always more of an educated guess is the spread for size. It would not be surprising if they waited until they decided what was an acceptable number for Q2 and then backsolved for the Q1 number.
Given it is almost impossible for them to unwind the trade unless they pay silly money, or do it very very slowly, the spread is an arbitrary number, but they clearly wanted to send out a positive message.
See his JPM stock ownership.
http://seekingalpha.co...
Yes, your a contributor ! Long live greed and leave the crumbs for the 300 million non-bankers ! DL
And they got away with it.
When gross miscalculations are rewarded Its not the numbers, its the Dimon mystique. Who knows how long the fawning will last?
H. Truman
I have mucho for all my success on WS !!!
But, scuttlebutt is enjoyable in the higher arky soap opera.And, when the insiders talk about General Holder almost in a all out fight with David Axelrod a simple threat by Ms Jarrent about them finding new jobs showed all in the US who runs the country ! And, she gets that power from the Mrs O. Not BO ! DL
So, I do follow the money and the person in charge of the real money in the WH is Valerie Jarrent. BO is the speaker with the great gift and she is the iron pants ! Yep. folllow the power that controls the money !
I've recently left the US lock stock an barrel and not looking back ! The Government is outta control and with the Supreme Courts two monstrous cases they ended any shred of freedom ! The Congress can do anything they dream up and tax it and the Automobile cases chucked out US contract law making any serious plans by foreigners to invest pure stupidity ! IMHO.
And then there is Obama's secret weapon !!! psssst Romney !
You can not use the word passion and Romney in the same sentence and he is toast ! Never missed an election call !
Pura vida , DL
PS http://bloom.bg/SoN2XI
1. News media talks about a player who has size in the market
2. Market participants know who has size and how to hurt them
3. Political pressure forces capitulation and JPM literally top ticks the market
4. Huge loss
Just like LTCM. If people didn't know their positions. They would (probably) never have to puke those positions and could have ridden them to maturity.
What you say sounds nice in theory. In the real world, history has taught us that players who break the rules seeking to make a killing in the markets usually become desperate when losses begin piling up. The next act is to double down to get even. When things continue to worsen, said gambler usually makes even more desperate bets in an attempt to cover up their mistakes/crimes. Las Vegas was built on the reliability of such behavior.
MFCorzineGlobal?
Question: If JPM "unwound the position," how can the losses still be mounting?
That is, in my opinion, the biggest problem with over-swollen corporations. No reasonable person could expect one person to manage the tens of thousands of JPM employees and so it creates an odd legal position.
No one in that position can know everything that every manager does but he is ultimately responsible for them...the answer is that the corporation is unmanagibly big...
Everything else is hyperventilation. Imagine if we stressed out over $4 billion at the Federal Government level? We would all be dead from the stress as they are blowing that much every few days.
JPM and Dimon are not even on the radar screen as our biggest problem but certainly our politicians will make it seem like they are while they are robbing you blind of your future along with your kids and grandkids.
Always look at the biggest numbers first. $4 Billion is not the number.
Even if there is no apparent replacement for Dimon he needs to resign or be fired as a matter of business practice. He is in charge and the buck stops with him. He failed the organization and worse yet the shareholders.
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exactly of shareholder
IMPO
everybody, who is not shareholder of {JPM}, has nothing to do neither with their loss nor who in charge of this company as long as their loss does not threatens our personal accounts placed in their guard
It also OK to criticize them (shareholder or non shareholder), if one runs against them for Job
We all see how Jamie helped Sandy steer Citibank into one of the largest disasters and come out smelling like a rose ( or diamond).He does not deserve any kudos now and a classy guy would step down. I doubt he has that class and should be removed. His CIO department was discussed at family dinners and he is not telling the truth playing the Sgt. Shultz I no nothing poop ! DL
Dimon took over in early 2006 and his performance is tracking a little below the S&P 500 in one of the worst banking environments since the 1930's. JPM stock is WAY ABOVE above peer institutions like C and BAC and tracks similair to WFC. And there are hundreds of banks not even around to compare to any longer. That is not bad given the shape of the industry.
What are you referring to that Dimon got Weill involved in? Weill fired him a long time ago so Weill owned that by himself from my perspective.
buck stops here!!! lol
I've yet to hear anyone make the point that someone won on their loss. Maybe a Euro gov't, maybe another bank, maybe an individual.
For someone to lose, someone has to win. Of course, that would require an objective media to point out that simple fact...
http://buswk.co/Lo4V8T
http://bit.ly/MtT9F1
http://on.wsj.com/Lo4V8W
http://nyti.ms/Lo4Xh5
But it is fascinating to watch... perhaps even more so because it's our federal government throwing the stones, as if they're financially responsible and in a place to hand out advice.
Most people have swallowed the politicians' and media's big-bad-banks story hook, line and sinker.
is JPM so short of a good leadership talent ?
see http://bit.ly/LoaRi7
Not sure how this will play out.
To relax and not hold the CEO responsible is exactly what "the smartest guys in the room" hope that you do.
I'm not necessarily saying that most big league bankers aren't thieves and crooks. What I am saying is that is the was they have always been that is the way they always will be. Therefore, the best you can do is to try and profit from the situation. And since Jamie Dimon isn't going anywhere, you should buy JPM right here (if you want to get into the financials at all), because unless Europe falls completely off a cliff and goes into a deep major recession, I'll practically guarantee JPM will be trading about 10-20% higher by years end. Perhaps more.
Cursing the darkness never made anyone any money.
Long JPM at $32.70
I have held Wells Fargo as the financial (Blackstone Group too) in my portfolio.
I am not against JPM, I just don't care for Mr. Dimon.
NY has had AG's that fit your description perfectly.
Have a good evening.