Dimon's mistake: He trusted the government

|By:, SA News Editor

Mike Mayo takes us back to a great source of modern security analysis, paraphrasing Otter consoling Flounder in Animal House ... "You [messed] up, you trusted us."

Jamie Dimon believed the government would never come after JPMorgan for mortgage losses related to Bear Stearns and WAMU. "Get it in writing," says Mayo. "We're in an era of Big Brother banking," he adds, noting regulators were MIA prior the financial crisis and have now moved to a stance of over-zealousness. "We should have gone to law school instead of business school."

JPMorgan and these loud numbers (reported $13B fine) make for great copy, but the Bank of Dimon (JPM +0.2%) is slightly higher this morning in wake of the news, and just 4% off its 52-week high.