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Stop “vilification” of corporate America!

hypocritexposer

Well-known member
Dimon Says System Can Be Saved If ‘Vilification’ Ends (Update1)
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By Elizabeth Hester

March 11 (Bloomberg) -- Jamie Dimon, chief executive officer of JPMorgan Chase & Co., said the U.S. can rescue its banking system by the end of the year if officials start cooperating and stop the “vilification” of corporate America.

“If we act like a dysfunctional family and we don’t finish these things and we’re forever debating them, I think this will go on for several years,” Dimon, 52, said at a conference hosted by the U.S. Chamber of Commerce in Washington. “It’s completely up to us at this point.”

Congress called Dimon and seven other bank CEOs to Washington last month to face criticism for outsized pay packages and executive perks at a time when losses were rising and the U.S. was pumping billions of dollars into their companies. Senate Banking Committee Chairman Christopher Dodd led an effort to put new restrictions on banks that receive government support.

“When I hear the constant vilification of corporate America, I personally don’t understand it,” Dimon said in his speech. “I would ask a lot of our folks in government to stop doing it because I think it’s hurting our country.”

Dimon called for the U.S. to create a “systemic risk regulator” and put procedures in place to deal with potential failures of large financial institutions.

“Failure is fine as long as it’s orderly, controlled, leads to resolution and doesn’t cause systemic failure,” Dimon said. At a Feb. 3 conference, he said he believed the Federal Reserve should have the authority to regulate all companies within the banking system.

TARP Effort

The banking industry has always been “heavily” regulated, though the crisis made it clear those regulations needed to be improved, Dimon said, adding that government oversight should be structured by product, not by company.

Dodd in a speech to the same conference urged “a new era of responsibility” and stronger consumer protections. U.S. regulatory reform must hold banks accountable for the risks their products pose, and protecting consumers is “essential for economic growth,” said Dodd, a Connecticut Democrat.

Dimon said the U.S. needs to “fix” securitization because no one was responsible for underwriting standards. Regulation in the mortgage market would help with disclosures and standardization, he said.

“My biggest mistake, probably of my whole career, was not closing down our mortgage broker business sooner,” Dimon said, citing a loss rate two to three times higher on loans not originated by the bank.

‘Very Optimistic’

Dimon said he was “very optimistic” about JPMorgan and its ability to work through the financial crisis.

Shares of the company, which have lost 35 percent this year, gained 90 cents, or 4.6 percent, to $20.40 in composite trading on the New York Stock Exchange at 4:05 p.m.

The bank’s first-quarter performance is “solidly profitable” and the outlook for earnings is “roughly in line with analyst expectations,” the bank said Feb. 23. The average estimate of 13 analysts surveyed by Bloomberg was for earnings of 33 cents a share.

The bank was profitable the first two months of the year, Dimon told CNBC today. Citigroup Inc. CEO Vikram Pandit said yesterday in an internal memo that his bank was also profitable in the first two months of the year.

JPMorgan, the second-biggest U.S. bank by assets, received $25 billion from the government’s first round of investments as part of the Troubled Asset Relief Program. Dimon said the program was a “major” step to stabilize the financial system. The New York-based bank made $46 billion in new loans and credit lines during January, he said.

Dividend Cut

JPMorgan slashed its dividend 87 percent last month to 5 cents, the first time since 1990 the lender or its predecessors made a cut. The move was not “directly related” to receiving TARP money and was aimed at protecting the company if the economy deteriorates “significantly,” Dimon said at the time.

The company has taken $33.3 billion in losses, writedowns and credit provisions since the start of the financial crisis. That’s a fraction of the $88.3 billion taken by Citigroup Inc. and $55.9 billion by Merrill Lynch & Co., now part of Bank of America Corp., according to data compiled by Bloomberg.

To contact the reporter on this story: Elizabeth Hester in New York at [email protected]
 

Tex

Well-known member
hypocritexposer said:
Dimon Says System Can Be Saved If ‘Vilification’ Ends (Update1)
Share | Email | Print | A A A

By Elizabeth Hester

March 11 (Bloomberg) -- Jamie Dimon, chief executive officer of JPMorgan Chase & Co., said the U.S. can rescue its banking system by the end of the year if officials start cooperating and stop the “vilification” of corporate America.

“If we act like a dysfunctional family and we don’t finish these things and we’re forever debating them, I think this will go on for several years,” Dimon, 52, said at a conference hosted by the U.S. Chamber of Commerce in Washington. “It’s completely up to us at this point.”

Congress called Dimon and seven other bank CEOs to Washington last month to face criticism for outsized pay packages and executive perks at a time when losses were rising and the U.S. was pumping billions of dollars into their companies. Senate Banking Committee Chairman Christopher Dodd led an effort to put new restrictions on banks that receive government support.

“When I hear the constant vilification of corporate America, I personally don’t understand it,” Dimon said in his speech. “I would ask a lot of our folks in government to stop doing it because I think it’s hurting our country.”

Dimon called for the U.S. to create a “systemic risk regulator” and put procedures in place to deal with potential failures of large financial institutions.

“Failure is fine as long as it’s orderly, controlled, leads to resolution and doesn’t cause systemic failure,” Dimon said. At a Feb. 3 conference, he said he believed the Federal Reserve should have the authority to regulate all companies within the banking system.

TARP Effort

The banking industry has always been “heavily” regulated, though the crisis made it clear those regulations needed to be improved, Dimon said, adding that government oversight should be structured by product, not by company.

Dodd in a speech to the same conference urged “a new era of responsibility” and stronger consumer protections. U.S. regulatory reform must hold banks accountable for the risks their products pose, and protecting consumers is “essential for economic growth,” said Dodd, a Connecticut Democrat.

Dimon said the U.S. needs to “fix” securitization because no one was responsible for underwriting standards. Regulation in the mortgage market would help with disclosures and standardization, he said.

“My biggest mistake, probably of my whole career, was not closing down our mortgage broker business sooner,” Dimon said, citing a loss rate two to three times higher on loans not originated by the bank.

‘Very Optimistic’

Dimon said he was “very optimistic” about JPMorgan and its ability to work through the financial crisis.

Shares of the company, which have lost 35 percent this year, gained 90 cents, or 4.6 percent, to $20.40 in composite trading on the New York Stock Exchange at 4:05 p.m.

The bank’s first-quarter performance is “solidly profitable” and the outlook for earnings is “roughly in line with analyst expectations,” the bank said Feb. 23. The average estimate of 13 analysts surveyed by Bloomberg was for earnings of 33 cents a share.

The bank was profitable the first two months of the year, Dimon told CNBC today. Citigroup Inc. CEO Vikram Pandit said yesterday in an internal memo that his bank was also profitable in the first two months of the year.

JPMorgan, the second-biggest U.S. bank by assets, received $25 billion from the government’s first round of investments as part of the Troubled Asset Relief Program. Dimon said the program was a “major” step to stabilize the financial system. The New York-based bank made $46 billion in new loans and credit lines during January, he said.

Dividend Cut

JPMorgan slashed its dividend 87 percent last month to 5 cents, the first time since 1990 the lender or its predecessors made a cut. The move was not “directly related” to receiving TARP money and was aimed at protecting the company if the economy deteriorates “significantly,” Dimon said at the time.

The company has taken $33.3 billion in losses, writedowns and credit provisions since the start of the financial crisis. That’s a fraction of the $88.3 billion taken by Citigroup Inc. and $55.9 billion by Merrill Lynch & Co., now part of Bank of America Corp., according to data compiled by Bloomberg.

To contact the reporter on this story: Elizabeth Hester in New York at [email protected]

"Dimon said the U.S. needs to “fix” securitization because no one was responsible for underwriting standards. Regulation in the mortgage market would help with disclosures and standardization, he said."

I don't think this guy gets it. Whoever bought the securities and those who underwrote them incorrectly that were ultimately responsible for the underwriting standards---IT WAS HIS COMPANY!!!

I don't know why we bailed out people like this. I think that losing money and their job and bonuses is the only way they will understand what happened.

I wish the the Congress would have stopped vilifying this guy and let him really feel it where it counts like everyone else--- in the wallet.

We are subsidizing idiots like this and their thinking. We should never have vilified him or others like him. We should have let him wallow in the mess they created and let them come to more appropriate conclusions after the company went through bankruptcy (which is way to lenient to businesses and those with money).

We are subsidizing risk for Wall Street and investors. Maybe we should do the same for gamblers in Vegas.
 
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