I've got 25 years in the business and sometimes I can't figure out what's going on with a $2T...

I've got 25 years in the business and sometimes I can't figure out what's going on with a $2T bank balance sheet, says Mike Mayo at the JPMorgan (JPM +1.1%) annual meeting. What about your risk committee gives it the experience to do the proper job, he asks Jamie Dimon. Passing on a chance to respond with a zinger (that's why you're an analyst, not banker), Dimon notes it's the same committee that helped steer the bank before and during the financial crisis.

From other sites
Comments (2)
  • Cliff Wachtel
    , contributor
    Comments (1767) | Send Message
    I wonder if CEOs of Lehman, Bear, and AIG thought the same thing pre-2007? Granted his bank didn't hit same fate, though wonder how close it got and what would have happened if AIG and other bailouts not happened.


    All gets down to how good is your hedging and how solid is your counter-party/insurer if you and others win a big bet against it -- all of them at the same time (which is what happens in crisis times)
    21 May 2013, 11:07 AM Reply Like
  • sacathanas
    , contributor
    Comments (1726) | Send Message
    I'm not really sure it matters any more what the CEOs of Lehman, Bear and AIG thought pre-2007. Two of those offices don't exist anymore, and one is here by the grace of a huge bailout. I think Mr. Dimon's point was exactly that -- JPM is still standing, was not in danger of going under, didn't need a bailout (actually was called upon to buy sinking stones) and in fact, came through the crisis pretty strong. All with the same risk committee that's there now, not to mention Mr. Dimon as CEO and COB. Good vote outcome today for shareholders.
    21 May 2013, 11:20 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs