Mortgages have been the most painful business ever, says Jamie Dimon, wrapping up JPMorgan's (JPM -1.5%) investor day with brief prepared remarks and now in the middle of a Q&A. "We have lost a tremendous amount of money."
"It's like Fed watching, coming to these meetings," says Morgan Stanley's Betsy Graseck, not getting satisfactory answers on her questions about capital returns. Dimon: "We don't know the final rules; when we get there, we'll be able to calibrate a little better."
What's wrong with the banking industry that JPM and others are making so few loans, asks Mike Mayo. Banks need to hold more liquid assets now to meet tougher liquidity ratio requirements, responds Dimon. Pressed by Mayo on splitting up the bank, Dimon said it would be a mistake to do so until figuring out what the big banking picture is going to look like. "Someone's going to look awfully stupid."
On higher rates: "We'll be making $5B more, and we won't have done a damn thing." For perspective, the bank expects to make $27B this year.
Earlier coverage of investor day