Posted on 04/10/2016 3:21:52 PM PDT by Lorianne
Jamie Dimon likes to write grandiose letters to shareholders. Unfortunately, the financial media sees fit to treat them seriously. And his minders manage to save him from himself. Right after the crisis, Dimon’s annual missive contained an section praising the heroics of his staff, comparing them at length to the soldiers at Iowa Jima. Dimon was persuaded to get rid of that bit only because his outside PR firm threatened to quit.
This year’s letter, as recapped by the Financial Times, is every bit as exaggerated, although less obviously so to the outsider. The theme this year is why too big to fail banks like his need to be left alone by meanie regulators and rabid politicians.
Customers allegedly need one-stop investment banking and commercial banking services. Here is Dimon’s claim:
Mr Dimon set out the benefits of structures spanning corporate and investment banking, arguing that they allow big banks such as JPMorgan to perform “mission-critical services . . . that regional and community banks simply cannot do”.
Since when? Commercial banking services (commercial loans and revolving credit, cash management, foreign exchange) are sold to treasurers and assistant treasurers of banks. Investment banking services (public bond and stock offerings, mergers) are sold to chief financial officers and CEOs. Both commercial and investment banks deal in derivatives (plain vanilla ones like swaps to supposedly lower funding costs, more complex ones for tax and accounting gaming). And as we’ve argued, the more complex ones are negative value added from a societal perspective, so any arguments that rely on the importance of complex products that integrate derivatives with more traditional products should be taken with a fistful of salt.
(Excerpt) Read more at nakedcapitalism.com ...
If they took tax payer money then they should be broken up. If they didn’t take taxpayer money than leave them alone.
And if they took taxpayer money and their stock has increased in value that money should be taken as a dividend and paid to the US treasury to pay back the taxpayer.
Same goes for GM and Chrysler. Break them up and pay back the taxpayer.
They do need to be broken up.
This is outrageous.
Why does Chase always come up when rumors of a ‘run on banks’ come up?
Isn’t that like the pimp telling the police to leave his hookers alone...?
Really?
Iowa Jima?
Was that the Caucus where Operation DeTrumpment was launched? The Cruz Marines took the Caucus but suffered heavy losses. Trump's forces lifted in and then out on Trump Force One. After the heavy losses incurred in the battle, the strategic value of the Caucus became controversial. It was useless to the establishment as a staging base and useless to the anti-establishment as a base for independence.
Sorry, but I couldn't get past that bit of historic illiteracy to the point of the article.
“If they took tax payer money then they should be broken up. If they didn’t take taxpayer money than leave them alone.”
BB&T refused the bailout money. Then Bernanke and Paulson explained to John Allison, the CEO, he had no choice. If he didn’t take it the Fed and Treasury would take action against the bank.
Should BB&T be broken up? In my opinion Allison should be named Chairman of the Fed or Secretary of the Treasury.
And from the New York Times:
“Mr. Allison says the government forced BB&T and some other healthy banks to accept TARP money to obscure that they were simply trying to save several large banks like Citigroup.
“Everyone thinks we got some kind of subsidy,” he says, noting that his company paid the money back in June, with interest. “It’s going to cost us about $250 million for money we didn’t want.””
http://www.nytimes.com/2009/08/02/business/02bbt.html?_r=0
Yes. Break them up! This will serve a lesson to anyone doing dirty deeds with the gov’t.
Yes. Break them up! This will serve a lesson to anyone doing dirty deeds with the gov’t.
BofA initially resisted, but was forced to play. Then they bought Merrill Lynch, and they ended up needing the help.
Maniacal CEO ALERT!
The most well connected insider bankster thinks they should be left alone. Go figure. Heaven forbid that someone as smart and powerful as him ever get held accountable for anything (sarc). America, meet your aristocratic overlords and do not question them.
If they had perp walked this guy and his crony buddies instead of rewarding them in 2008, we would have already been done with this mess like Iceland.
EXACTLY! Leave them alone to fail and be scavenged by the hungry surviving smaller entities...
The Treasury Secretary?
I hope not.
Great find!
Thank you!
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