Dimon can’t 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 don’t 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 bank’s chain of command as well as its risk controls, not to mention whether new regulation would have prevented what’s come to be known as the “London whale” trade.
On several key points, consider Dimon’s response when confronted by senators including Republicans Bob Corker of Tennessee and South Carolina’s Jim DeMint as well as Robert Menendez, Democrat representing New Jersey.
Would the Volcker Rule help avoid these kinds of trading fiascoes?
“I don’t know what the Volcker Rule is” was his initial response, before adding that it “hadn’t been written” 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 don’t, someone else will — the old leave-us-alone-or-the-U.S.-will-fall-behind argument, in other words.
Regarding global banking capital requirements, Dimon still thinks they’re biased against the U.S. banks.
Read related commentary on Dimon’s whining about Basel III http://www.marketwatch.com/story/pain-in-spain-could-come-to-us-again-2012-06-12He 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 isn’t against strong regulation. He’s against more regulations, and only the ones “that don’t make sense.”
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 “whale” becomes another albatross for the bank or the industry is one question. How he can continue to tolerate our stupid questions is another.
