JPMorgan Chase Still Haunted By Foreclosure Reviews, And More
Last week Jessica Silver-Greenberg and Ben Protess at the New York Times DealBook catalogued the trials and tribulations of JPMorgan and, in particular, its CEO and Chairman Jamie Dimon. The list of woes grows by the day. It was gratifying to me to see major media now noticing the chinks in Dimon’s armor.
I called Dimon’s thus far avoidance of accountability a “results reprieve” in a segment I taped for the Keiser Report last November. Dimon hasn’t yet suffered the fate of some other banking leaders – Bob Diamond, Oswald Grübel, and Kenichi Watanabe come to mind – even though the list of significant legal and regulatory contingencies JPMorgan faces is long. Dimon is still delivering, by hook or crook, positive earnings and a healthy stock price to its shareholders.
Barclays’ Diamond, UBS’ Grübel, and Nomura’s Watanabe were pushed out by their boards, undoubtedly under pressure from regulators after so many scandals started pointing to the top.
The same qualities that draw some still to JPMorgan’s Dimon – strong, autocratic hands-on style, unstinting attention to detail, swaggering confidence – are the ones that have come back to bite him as investigators probe who knew what when and where the buck stopped, especially with the “Whale” trade. Too many lapses in law and judgment point directly at Dimon’s decisions. Where else would they point given how he prides himself on being so controlling when there’s something to take credit for?