Jamie Dimon

Jamie's Round Up

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rounduplassoThe Senate Committee on Banking held a hearing, A Breakdown in Risk Management: What Went Wrong at JPMorgan Chase? They had one witness, JPMorgan Chase CEO Jamie Dimon.

This one man apology show is about the $2 billion or greater trading loss JPMorgan Chase incurred due to speculative derivatives.

Truth be told the hearing was softball, not a grilling. This should be no surprise since JPMorgan Chase gives a lot of campaign contributions including those on the Senate Banking Committee.

Dimon revealed very little about the trade and not much more about his knowledge of it. He refused to discuss details of it, lest he reveal secrets to competitors -- who already know all about the trade and have been hammering JPMorgan on it, adding to the bank's losses. But the committee didn't challenge him on that, even after he turned down an offer to close the hearing to the public.

Bloomberg's story quote implies the Senators plain don't understand derivatives:

Your Feet's Too Big!

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Your pedal extremities are colossal  To me you look just like a fossil. – Fats Waller

 

Business executives like to talk about their “footprint”. When JP Morgan Chase and Bank of America were racing all around the United States to see which could be the first to have a full national presence in every important market, they would talk about how their footprint was expanding state by state. Then it was on to establish a full global footprint, including in all key emerging markets, which supposedly are going to provide double-digit earnings growth for these banks during the next twenty years.