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XMFSinchiruna (26.58)

JPMorgan CEO says thew worst is yet to come



January 22, 2009 – Comments (7)

Someone should tell Hank Paulson this news... unless -- like Cheney -- he too has suddenly been relegated to a wheelchair within hours of the end of his tenure. How many billions of $ do you think those officials who declared the worst was behind us late last summer cost the average American consumer by creating a false and misleading sense of comfort? There is simply no accountability anymore. 

And for that matter, if the worse is yet to come (as we all know is it), then how is it that the credit rating agencies are permitted to continue to offer top-tier ratings for the majority of American blue chips and even for the U.S. government? Simple... they are part of the same big-boys network that created our demise in the first place.

JPMorgan chief says worst of the crisis still to come: FT

Jan 14, 2009

LONDON (AFP) — The chief executive of US bank JPMorgan Chase, Jamie Dimon, told the Financial Times on Thursday that the worst of the economic crisis still lay ahead as hard-hit consumers default on their loans.

"The worst of the economic situation is not yet behind us. It looks as if it will continue to deteriorate for most of 2009," he told the business daily.

"In terms of our sector, we expect consumer loans and credit cards to continue to get worse."

Dimon said the bank -- which bought rivals Bear Stearns and Washington Mutual last year -- was prepared for a deterioration in consumer-orientated businesses but if things were worse than expected, it would have to cut costs further.

The interview was published after a fresh wave of selling hit US and European stock markets Wednesday, as an unrelenting flow of bad economic and corporate news sparked fears of a deepening global downturn.


7 Comments – Post Your Own

#1) On January 22, 2009 at 1:50 PM, DemonDoug (30.80) wrote:

Dimon is the best CEO of all the banks out there.  If I were to invest in a bank, it would be JPM, partially because they are basically the retail front of the federal reserve, but that wouldn't mean much if there wasn't a skilled captain at the helm.  JPM definitely made it's mistakes with the rest of the banking system, but you never saw JPM pulling a BAC by overpaying for MER or CFC, and he basically held the government hostage for favorable terms for both wamu and bear stearns.  I actually made a positive caps points call on JPM a while back, and I might think about doing that again.

I wish there was a way Dimon could be Federal Reserve President or secratary of treasury.  Here is a guy who knows the business inside and out, and while that may overly benefit the banking industry, I think you want a banker to run the banking industry, instead of academics who have no practical experience and do nothing more than use untested programs to try to fix a problem that they continue to exacerbate.

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#2) On January 22, 2009 at 3:12 PM, XMFSinchiruna (26.58) wrote:

I don't trust a single one of them. Among the thousands upon thousands of individuals who share the blame for thie attrocious mess, the bank CEOs as a group stand near the front of the pack. Toxic derivative vehicles were like crack, and I view anyone who willingly bought and sold them as the equivalent of crack dealers... except that while crack-heads have a limited number of people adversely impacted by their addiction, the bankers victimized each and ever one of us.

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#3) On January 22, 2009 at 8:24 PM, cbwang888 (25.70) wrote:

We all know now that our banking system is nothing more or less than a ponzi

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#4) On January 22, 2009 at 8:47 PM, iamnik77 (91.68) wrote:

Back when I used to work for Chase sometime around '03 we received an office email in which the sender included a quote from James Dimon. Dimon was doing some aggressive cost cutting at the time and the word was that he was aiming for about 2 billion in cost cuts a year. In an attempt to get everyone on board with the cost cuts he said that if we could acheive the cost cuts, "....if our stock isn't $100.00 in five years I'll eat my hat..." Ha ha. I'm rooting for the stock to do well since I own some of it, but sometimes even CEOs don't know what they are talking about.

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#5) On January 23, 2009 at 2:43 AM, DemonDoug (30.80) wrote:

I'm not saying Dimon is a good man, I am saying he is a great banker.  While BAC and C and so many other banks have fallen on their swords, JPM is still standing in the hurricane winds of this epic economic downturn.  I would certainly rather have him at the helm then Geithner or Paulson or Bernanke.

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#6) On January 23, 2009 at 8:41 AM, XMFSinchiruna (26.58) wrote:


Yeah... then we could all eat his hat. :P  No thanks! 

It's hard determining the lesser of three evils.

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#7) On January 23, 2009 at 9:53 AM, outoffocus (24.09) wrote:

A rec just for meantioning the US Government's long undeserved AAA rating.  I see the strands on the shoestring popping one by one. The question now is when the shoe finally drops,  who will it fall on and how hard will it fall?

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