Federal Reserve fine: $200m
SEC fine: $200m
OCC fine: $300m
UK FCA fine: £137m
JPMorgan shareholders keeping Jamie Dimon as chairman: priceless Read more
This is what JPMorgan investors were treated to on the webcast, after hearing shareholders at the bank’s annual meeting vote against splitting the chairman and chief executive roles…
Only one mention of “Chief Investment Office” in JP Morgan’s Q3 earnings release. And Jamie’s calling the turn in the US housing market… Read more
In hindsight, CIO’s traders did not have the requisite understanding of the risks they took…
JPMorgan’s chief executive Jamie Dimon is up before the US Senate Committee on Banking, Housing and Urban Affairs on Wednesday, to discuss “A Breakdown in Risk Management: What Went Wrong at JPMorgan Chase?”. (Here’s the testimony Jamie prepared earlier.) Read more
Reading through a new CreditSights note about the JPMorgan CIO trade fallout and hedge accounting treatment, we came across this historical tidbit (emphasis ours):
Back when CEO Dimon was the head of Bank One, there were episodes in the early 2000s when the company registered hefty gains, and then some [marked-to-market] losses on a CDS book designed to hedge underlying credit risk of the loan portfolio. Read more
NEW YORK–(BUSINESS WIRE)–JPMorgan Chase (NYSE: JPM) announced today that Ina Drew, Chief Investment Officer, has made the decision to retire from the firm. Ina has served the firm for more than 30 years, most recently as head of our Chief Investment Office.
Matt Zames, currently co-head of Global Fixed Income in the Investment Bank and head of Capital Markets within the Mortgage Bank, will succeed Ina as the firm’s Chief Investment Officer and continue in his mortgage-related responsibilities. Matt will also join the firm-wide Operating Committee. Daniel Pinto, currently co-head of Global Fixed Income with Matt, will become sole head of the group. Daniel will also remain CEO of our Europe, Middle East and Africa region, based in London. Read more
The saintly Jamie Dimon would like to make something crystal clear:
Today’s New York Times op-ed by a Goldman Sachs executive is generating a lot of discussion around the street. I want to be clear that I don’t want anyone here to seek advantage from a competitor’s alleged issues or hearsay – ever.” Read more
Mike Mayo at CLSA has set his sights on JPMorgan on the eve of the bank’s annual investor conference.
In a new note (via NYT DealBook) he takes aim at JPM’s expansionary policy in a “Japan-lite” environment, particularly in Europe. The US branch expansion plans look a bit last century, and how can they be so confident US housing is bottoming, anyway? Read more
JPMorgan chief executive Jamie Dimon has admitted the bank considered pulling out of the eurozone’s most troubled periphery on economic grounds, says the FT. Mr Dimon said his company had “about $15bn exposure” across the GIIPS countries. “It’s largely to corporations and sovereign and some banks. But we made a decision which was largely social, and partially economic, to stay,” he said. Mr Dimon also told a panel at Davos he might support President Barack Obama’s “Buffett rule”, which would raise taxes on high-earning Americans. Mr Dimon said the US should have a “conversation” about tax rates.
JPMorgan has increased lending to five peripheral eurozone economies by nine per cent since the end of September, the FT reports. Loans to Greece, Spain, Italy, Portugal and Ireland rose from $14bn as of June 30, to $15.2bn at the end of the third quarter and $15.9bn on November 17. In August, the bank’s chief executive Jamie Dimon said that JPMorgan “won’t cut and run” from Europe, with the move being interpreted as a bid to grab market share from other US banks and European lenders who must now deleverage their assets in the region. Dimon said that a “disaster” in the eurozone periphery would lead to a direct $3bn loss for JPMorgan.
Jamie Dimon of JPMorgan Chase launched a tirade at Mark Carney, Bank of Canada governor, in a closed-door meeting in front of more than two dozen bankers and finance officials, underscoring mounting tensions between bankers and officials over financial regulation, the FT says, citing several people at the meeting. The JPMorgan chief executive’s remarks to Mr Carney, who is touted as a potential next head of the Financial Stability Forum, the international group of regulators, were focused on a capital surcharge for the largest banks, according to several people who attended the meeting of about 30 bank chiefs. The JPMorgan chief executive’s remarks to Mr Carney, who is touted as a potential next head of the Financial Stability Forum, the international group of regulators, were focused on a capital surcharge for the largest banks.
Jean-Claude Trichet, the outgoing head of the European Central Bank, hit back Wednesday night at global banking executives who have called for the tough new Basel III bank safety rules to be weakened, the FT reports. Mr Trichet, who forged the global agreement to tighten capital and liquidity rules, slapped down complaints about the package from Jamie Dimon, JPMorgan Chase’s chief executive, and the heads of several European banks. “I see resistance of some in the financial sector against Basel III … For me, it is crystal clear: what has been decided is decided,” Mr Trichet told a gathering of regulators and bankers at the Eurofi conference at Wroclaw in Poland.
JPMorgan’s chief executive Jamie Dimon has said that the US should consider withdrawing from the Basel III international bank capital standards, says the FT. “I’m very close to thinking the United States shouldn’t be in Basel any more. I would not have agreed to rules that are blatantly anti-American,” Dimon told the FT. Mr Dimon said there was a threat that Asian banks, in particular, could take US market share because of the combination of US domestic and global rules.
New international bank capital rules are “anti-American” and the US should consider pulling out of the Basel group of global regulators, Jamie Dimon, chief executive of JPMorgan Chase, told the FT. Mr Dimon said he was supportive of forcing banks to have more capital but argued that moves to impose an additional charge on the largest global banks went too far, particularly for American banks. “I’m very close to thinking the United States shouldn’t be in Basel any more. I would not have agreed to rules that are blatantly anti-American,” he said. “Our regulators should go there and say: ‘If it’s not in the interests of the United States, we’re not doing it’.” Mr Dimon also criticised global liquidity rules, arguing that regulations that viewed covered bonds – a European market feature – as highly liquid but discounted government-backed mortgage-backed securities in the US were unfair and that other details hit investment banking activity core to US banks hardest.
JPMorgan Chase reported a 13 per cent jump in quarterly profits on fewer loan defaults and surprisingly resilient trading revenue, defying expectations that a litany of economic, legal and regulatory challenges would weigh heavily on US banks’ results, according to the FT. Revenue rose, net income exceeded Wall Street estimates, and JPMorgan’s chief executive downplayed two of investors’ biggest concerns: the bank’s potential losses in Greece and other troubled European economies, and the effects of sweeping financial regulatory reform on banks’ profits. Reuters notes that Citigroup, which reports on Friday, now has an uphill climb to match JPM’s strong results.
Tim Geithner will decide on whether to leave the post of Treasury secretary once negotiations on raising the debt ceiling are over, Bloomberg says. President Obama faces losing the last member of his original economic team months before his re-election campaign hits full stride. Geithner has been privately discussing the move for weeks, reports the FT. Figures including CFTC chair Gary Gensler, Facebook COO Sheryl Sandberg and OMB head Jack Lew have already been mooted as his replacements, says Reuters. Jamie Dimon could be a ‘strong dark-horse candidate’ nevertheless, according to Politico, depending on the White House’s willingness to align itself with Wall Street.
Average pay for bank chiefs in the US and Europe leapt 36 per cent last year to $9.7m, according to data compiled for the FT. Jamie Dimon, and Lloyd Blankfein were paid more than 15 times their 2009 earnings by JPMorgan and Goldman Sachs. Mr Dimon received nearly $21m in 2010, topping the FT’s survey of the salary and bonus packages awarded to 15 top bankers. Mr Blankfein earned $14.1m, including a $5.4m cash bonus – up from $863,000 in 2009. The analysis by Equilar, the US-based pay research company, shows chief executive pay at several banks is still significantly lower than its pre-crisis high. Mr Blankfein earned more than $70m at Goldman in 2007 while Mr Dimon received $40m in 2006.
JPMorgan has reshuffled what had been one of the most stable executive suites in America, assigning its retail chief to a private equity unit and seeing the head of its international business retire, the FT reports. The move followed the departure of David Lowman, head of the bank’s mortgage arm and a casualty of the foreclosure scandal, also on Tuesday. Charles Scharf, chief executive of JPMorgan’s retail financial services arm, will leave the post to become a partner at the bank’s private equity arm, One Equity Partners. Another long-time deputy, Heidi Miller, will retire, the bank said. While Jamie Dimon claimed that the reshuffle is not related to sucession plans, the move will eliminate most of his deputies as possible replacements, the FT adds.
Bank chiefs’ average pay in the US and Europe leapt 36 per cent last year to $9.7m, according to data compiled for the FT, despite variable performance across the sector. Jamie Dimon of JPMorgan Chase and Goldman Sachs’ Lloyd Blankfein were paid more than 15 times their 2009 earnings last y ear, at $21m and $14.1m respectively — although both received much less than in 2007. In the UK, the chief executives of Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland were awarded cash and stock bonuses valued at more than $26m last year. That contrasts with 2009, when all four declined bonuses in a nod to public and political furore. Full results of the analysis, carried out by Equilar, are available in an interactive presentation.
“… Yes, you, the short man in the smart suit.”
“Jamie Dimon, JP Morgan. I’d just like to ask…” Read more
Jamie Dimon has confronted Ben Bernanke over the pace of financial regulation, suggesting that reforms to capital requirements have held back the recovery, reports the FT. “Has anyone bothered to study the cumulative effect of all these things?” Mr Dimon asked. “There’s no more subprime, there’s no more Alt-A, there’s no more mortgages being packaged, the CMBS market has been completely reformed,” Dimon also said, suggesting that bank capital reforms had made it uneconomic to hold mortgages on books, adds Bloomberg. Bernanke countered that regulators were aware of the balance between regulation and constraint, Housing Wire says.
JPMorgan CEO Jamie Dimon is planning a shake-up of the bank’s top management, reports the WSJ, citing people familiar. Two executives on the New York bank’s 15-person operating committee, commercial-banking chief Todd Maclin and top international executive Heidi Miller, are expected to step down. Miller is likely to retire, while Maclin is expected to take another role within the bank. Another ally of Dimon’s, investment-bank chief Jes Staley, has faced internal questions about his strategy and priorities. Staley has held the job since late 2009, after the acrimonious ouster of the bank’s two longtime co-chiefs. The unit is JPMorgan’s most profitable business. The debates and likely moves suggest significant change at a bank known for unity at the top, adds the report.
JPMorgan’s chief executive Jamie Dimon is planning a shake-up of the bank’s top management, reports the WSJ. Two executives on the New York bank’s 15-person operating committee, commercial-banking chief Todd Maclin and top international executive Heidi Miller, are expected to step down from those jobs soon, say people familiar with the matter. Miller is likely to retire, while Maclin is expected to take another role within the bank. Another ally of Dimon’s, investment-bank chief Jes Staley, has faced internal questions about his strategy and priorities. Staley has held the job since late 2009, after the acrimonious ouster of the bank’s two longtime co-chiefs. The unit is JPMorgan’s most profitable business. The debates and likely moves suggest significant change at a bank known for unity at the top, adds the report.
Jamie Dimon has collecting a $5m bonus – his first cash pay-out in three years – as part of a $23m pay package for leading JPMorgan Chase during 2010, the FT reports. Mr Dimon’s pay, revealed in a regulatory filing on Thursday, is a 51 per cent increase on the $15.2m in cash and shares he earned for 2009 and comes after a year that saw JPMorgan’s profits rise 47 per cent to a record $17.4bn. The bank also paid $421,458 in relocation expenses related to Dimon’s sale of his Chicago home last year, Bloomberg says.
News that Jamie Dimon, chief executive of JPMorgan Chase, is collecting a $5m bonus – his first cash pay-out in three years – as part of a $23m pay package for 2010 highlighted Wall Street’s return to financial health, reports the FT. Dimon’s pay, revealed in a regulatory filing on Thursday, is a 51% increase on the $15.2m in cash and shares he earned for 2009 and comes after JPMorgan’s profits rose 47% to a record $17.4bn in 2010. Several US financial groups have resumed paying huge cash bonuses to top executives, including Goldman Sachs, where CEO Lloyd Blankfein gained $18.6m in total compensation for 2010. In an annual letter to shareholders on Thursday, Dimon gave assurances about the bank’s eurozone exposure and warned against excessive US regulation. DealBook examines how Dimon’s pay lines up against that of rivals.
JPMorgan Chase’s chief executive Jamie Dimon has warned that new capital rules could be “the nail in our coffin for big American banks”, reports the FT. If requirements were set too high, or allowed foreign banks to count capital differently, US banks would be disadvantaged, Dimon said in remarks to the US Chamber of Commerce. “If you think that’s helping growth, it’s not,” Dimon said, adding that a 7 per cent capital ratio would be adequate. Mr Dimon’s comments come as Wall Street executives and Republican members of Congress are starting to attack regulation as anger at the financial industry subsides.
Jamie Dimon, chief executive of JPMorgan Chase, launched a broadside against financial regulation on Wednesday, warning that new capital rules could be “the nail in our coffin for big American banks”, reports the FT. Regulators are negotiating international capital standards for the biggest banks but Dimon warned that setting the new requirements too high, or allowing overseas banks to calculate their asset base differently, could disadvantage US banks and was already stifling economic growth. Clearly, notes DealJournal, Dimon “now has had it up to his eyeballs in government regulation and banker bashing (though there have been signs of Dimon’s détante with the White House).”