Dimon canít hide disdain for questions - J.P. Morgan chief squirms in committee hearing
13 June 2012
, by David Weidner - New York (MarketWatch)http://www.marketwatch.com/story/dimon-cant-hide-disdain-for-questions-2012-06-13Jamie Dimon is disgusted with us idiots who donít understand banking
Seriously, what other conclusion could one come to after watching Dimon, chief executive and chairman of J.P. Morgan Chase & Co., joust with members of the Senate Banking Committee on Wednesday? See a live blog of the hearing http://blogs.marketwatch.com/election/2012/06/13/live-blog-of-j-p-morgan%E2%80%99s-dimon-getting-grilled-on-capitol-hill/
Dimon, called to account for a $2 billion or more trading loss suffered in the second quarter, was visibly irritated when asked about the bankís chain of command as well as its risk controls, not to mention whether new regulation would have prevented whatís come to be known as the ďLondon whaleĒ trade.
On several key points, consider Dimonís response when confronted by senators including Republicans Bob Corker of Tennessee and South Carolinaís Jim DeMint as well as Robert Menendez, Democrat representing New Jersey.
Would the Volcker Rule help avoid these kinds of trading fiascoes?
ďI donít know what the Volcker Rule isĒ was his initial response, before adding that it ďhadnít been writtenĒ yet and was very complicated.
Has your institution become too complex to manage?
The economy is too complex, Dimon said, adding that the bank tries to serve a business community of 27 million. J.P. Morgan Chase needs to be big and complex to serve big, complex companies.
The inference: If we donít, someone else will ó the old leave-us-alone-or-the-U.S.-will-fall-behind argument, in other words.
Regarding global banking capital requirements, Dimon still thinks theyíre biased against the U.S. banks. Read related commentary on Dimonís whining about Basel III http://www.marketwatch.com/story/pain-in-spain-could-come-to-us-again-2012-06-12
He also got a little testy when Jeff Merkley, (D., Ore.), suggested J.P. Morgan got a bailout.
Plus, all of you have it wrong. Jamie Dimon isnít against strong regulation. Heís against more regulations, and only the ones ďthat donít make sense.Ē
Dimon has come off too much like a know-it-all. His inner confidence and cockiness have come to the surface.
Whether his explanation for the ďwhaleĒ becomes another albatross for the bank or the industry is one question. How he can continue to tolerate our stupid questions is another.