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Tag: JPMorgan Chase

  • Dimon rides high on JPMorgan report of $2.7 billion profit

    On today’s financial battlefield, Jamie Dimon is Achilles, standing tall among his bloodied opponents, ready to drag their bodies in triumph.

    Is he a hero or a brute?

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    While so many others have fallen, he has led his company, JPMorgan Chase, to record revenues. The firm today reported profits of $2.7 billion in the second quarter, on revenues of $27.7 billion.

    Jamie Dimon
    Jamie Dimon

    “Throughout this crisis, we have remained committed to doing our part to help bring stability to the communities in which we operate and to the financial system overall,” announced the chairman and CEO.

    Dimon knows opportunity when he sees it. Calling him “one of America’s most powerful and outspoken bankers,” The New York Times notes that he is taking advantage of the financial crisis to surge well ahead of his competitors.

    The company took $25 billion in federal bailout money last year. Although he initially supported the government’s Troubled Asset Relief Program, Dimon reportedly chafed at his company being described as a bailed-out bank. JPMorgan repaid its TARP funds ahead of schedule.

    In buying out Bear Stearns and Washington Mutual, the company extended its reach not only in the financial world, but in Washington.

    Now Dimon, a director of the New York Fed, is talking tough to the Treasury Department, opposing tighter supervision of the derivatives market.

    The firm has a battery of lobbying firms in Washington, bending the ears of members of Congress about this issue and other regulatory proposals.

    “Derivatives didn’t cause the problem,” Dimon told the Economic Times last month. “They helped amplify it. It’s a perfectly legitimate instrument and we are the largest derivative dealer in the world.”

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    • America loses Cronkite

      July 18, 2009 at 1:00pm

      Only Walter Cronkite could have summed up in two words the drive that propelled him to his iconic role as the most trusted voice in broadcast news.

    • WaMu seized by federal regulators, sold to JPMorgan Chase (Muckety.com)

      David Bonderman and Alan Fishman got a big surprise yesterday from the federal government.

      Bonderman, founder of TPG private equity firm, was a major investor in the struggling Washington Mutual. Fishman became CEO of the bank just three weeks ago.

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      In the nation’s biggest bank failure to date, the FDIC seized WaMu last night, and then quickly sold it to JPMorgan Chase for $1.9 billion.

      Bonderman, a former WaMu director who led a $7 billion investment in the company in April, will lose big. Fishman, however, has a golden parachute.

      The New York Times reports that Fishman will keep his $7.5 million signing bonus and is eligible for another $11.6 million in severance pay.

      With $307 billion in assets, WaMu was a threat to the solvency of the FDIC, which insures customer bank accounts up to $100,000 per person, per institution. The federal insurance fund,depleted by the earlier failure of IndyMac Bank, totaled just $45.2 billion at the end of June.

      The Times reports that the WaMu takover was a shock to the company’s board as well as its CEO, who was flying from New York to Seattle when the deal was completed.

      TPG released a statement yesterday, saying simply: “Obviously, we are dissatisfied with the loss to our partners from our investment in Washington Mutual.”

      The Wall Street Journal’s report today was equally bleak:

      The fact that no bank was willing to buy WaMu until it failed shows how badly confidence has eroded in a banking system awash with record profits just a few years ago. Faced with deepening losses on mortgages, credit cards and other loans, big and small banks across the country are struggling with what many bank executives say is a crisis far deeper than the savings-and-loan debacle.

      This is the second fire sale in which JPMorgan has acted as buyer. The company bought Bear Stearns in March.

      ([Muckety.com](https://createpositivechange.org/2008/09/26/wamu-seized-by-federal-regulators-sold-to-jpmorgan-chase/5222)

    • Bear Stearns bid would mean $100M to Joe Lewis

      Things are looking up, but only slightly, for Bahama billionaire Joe Lewis.

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      JPMorgan Chase today upped its offer for Bear Stearns from the bargain-basement price of $2 a share to $10 share. The increase amounts to an additional $97 million for Lewis, who holds 8.35% of the company stock.

      Yet even at the higher price, Lewis will lose mightily. Over the past year, he has bought up Bear Stearns shares at an average price of $104. At $10 per share, his losses would exceed $1 billion.

      Like many stockholders, Lewis was outraged by the initial deal. In documents filed last week with the Securities and Exchange Commission, he promised that his companies would “take whatever action that they deem necessary and appropriate to protect the value of their investment.”

      The Bear Stearns bailout and the resulting shareholder outcry have combined to bring unwanted attention to Lewis and his financial empire. As his daughter Vivienne once explained, “He doesn’t like to talk to people. It aggravates him.”

      Lewis started building his fortune as a teenager, when he left school to work for his father’s London catering firm. He made millions when he sold the business in 1979, then moved to the Bahamas, where he made millions more in currency trading. He oversees a complex of companies centered around a holding company, the Tavistock Group.

      His interests include land development, life sciences, energy, restaurants such as the Napa Valley Grille and the Alcatraz Brewing Company, and sports, including the Tottenham Hotspur soccer team. His company organizes the annual Tavistock Cup golf tournament, scheduled to be played today and tomorrow, with his friend Tiger Woods among the competitors.

      Lewis hasn’t yet publicly responded to JPMorgan’s revised offer, and the SEC listed no new filings from him by the close of the business day. Maybe he chose to spend the day concentrating on golf.

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