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Tag: Jamie Dimon

  • JPMorgan CEO Jamie Dimon Working on First Republic Rescue Plan

    JPMorgan CEO Jamie Dimon Working on First Republic Rescue Plan

    JPMorgan CEO Jamie Dimon is reportedly leading the charge to save First Republic Bank and restore confidence in the bank.

    First Republic is facing its worst crisis in 15 years on the heels of three other banks collapsing. Silicon Valley Bank collapsed in early March, and Signature Bank followed shortly after. Meanwhile, Credit Suisse’s freewheeling ways finally caught up with it, leading to its sale to rival UBS.

    According to The Wall Street Journal, Dimon is leading a coalition of banks that are trying to keep First Republic from following SVB and Signature. Dimon helped orchestrate eleven banks in depositing $30 billion into First Republic in an effort to restore confidence.

    The assisting banks have yet to rule out converting the deposit into a straight cash infusion if necessary.

    Either way, the lengths Dimon and his fellow bankers are going to demonstrate the fragility of the current economic situation.

  • RH CEO: ‘Anybody Who Thinks We’re Not In a Recession Is Crazy’

    RH CEO: ‘Anybody Who Thinks We’re Not In a Recession Is Crazy’

    Anyone hoping the current economic downturn is just a blip will surely be disappointed by RH CEO Gary Friedman’s warning.

    Companies and business leaders have been sounding the alarm about the state of the economy, freezing hiring and laying off workers in an effort to cut costs and weather what’s coming. According to Friedman, the economy may be worse off than some want to admit.

    “Anybody who thinks we’re not in a recession is crazy,” Friedman told analysts, via CNN. “The housing market is in a recession, and it’s just getting started. So it’s probably going to be a difficult 12 to 18 months in our industry. But these are the times where you can really capitalize.”

    Friedman is hardly the only one to sound a dire warning about the economy. In June, JPMorgan CEO Jamie Dimon warned there was a hurricane coming, although it was too soon then to tell how big it would be.

    “That hurricane is right out there down the road coming our way” the CEO said. “We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”

    Three months later, it appears the view is clear enough for Friedman to make the observation he did.

  • JPMorgan CEO Jamie Dimon Doubles Down on Economic Warning

    JPMorgan CEO Jamie Dimon Doubles Down on Economic Warning

    JPMorgan CEO Jamie Dimon has already warned about the state of the economy but has now doubled down, revealing exactly what worries him.

    Dimon is one of the most influential leaders in finance, so when he expresses concerns about the economy, people take notice. In early June he warned an economic “hurricane is right out there down the road coming our way,” but he’s now revealed what he believes are the biggest issues creating that hurricane.

    According to CNBC, Dimon made his comments at JPMorgan Chase’s latest quarterly release. Dimon acknowledged there were some bright spots, such as the “economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy.”

    Dimon then went on to highlight the plethora of negative factors that he believes will take a toll on the economy:

    “But geopolitical tension, high inflation, waning consumer confidence, the uncertainty about how high rates have to go and the never-before-seen quantitative tightening and their effects on global liquidity, combined with the war in Ukraine and its harmful effect on global energy and food prices are very likely to have negative consequences on the global economy sometime down the road.”

    In his comments in June, Dimon said it was still unclear what kind of economic hurricane was on the horizon, whether “it’s a minor one or Superstorm Sandy.” It’s a safe bet his latest comments aren’t going to ease too many people’s minds.

  • JPMorgan Circling the Wagons After Its Employee Monitoring Program Leaked

    JPMorgan Circling the Wagons After Its Employee Monitoring Program Leaked

    JPMorgan is circling the wagons, leaving employees feeling “disgusted” after the company’s employee monitoring program was leaked to the press.

    Like many large companies, JPMorgan has a complicated relationship with hybrid and remote work. CEO Jamie Dimon is not a fan of remote work despite the company finally adopting a hybrid remote policy.

    The company’s relationship with hybrid work, and its employees, became much more complicated after Business Insider reported on its employee monitoring system, called “Workplace Activity Data Utility,” or WADU for short. WADU is designed to track how employees spend their time, including their in-office time, Zoom usage, and much more.

    In response to the report, Insider is reporting that JPMorgan called an emergency meeting to try to prevent further leaks, even telling managers to communicate policy updates verbally to make it harder to leak documents and communication to the press.

    The company’s actions are not going over well with employees, many of whom are not happy about being monitored or JPMorgan’s opaque handling of the matter. According to one employee who was present at the meeting, “people felt disgusted. They just felt as if they were being betrayed, and that this was a way for the company to just instill fear into employees.”

    A JPMorgan spokesperson refuted Insider’s report, telling the outlet he was “not aware of any direction or meeting with ‘mid-level or senior-level executives’ to restrict access or knowledge of WADU, nor have we made any access changes to the system, as your anonymous source suggests.”

    If Insider’s reports are true, this certainly wouldn’t be the first time a major company has upset its employees with its handling of remote and hybrid work or by spying on employees.

  • Adobe CEO: E-Commerce Price Drops Should Fuel Strong Shopping

    Adobe CEO: E-Commerce Price Drops Should Fuel Strong Shopping

    Adobe CEO Shantanu Narayen had some good news for the e-commerce sector, saying that dropping prices in some categories should help fuel strong shopping.

    Government and business leaders the world over are worried about the state of the economy. Rising inflation, supply chain issues, unfilled jobs, the war in Ukraine, and other factors threaten an economic downturn. JPMorgan CEO Jamie Dimon likened it to a hurricane, although it’s still unclear how bad a hurricane it will be. Despite the cause for trepidation, Narayen believes the e-commerce sector has some reason to be optimistic.

    “When you look at the total expense, in addition to the macroeconomic, where there may be a little bit more concern, what’s happening is actually you’re seeing some price decreases in elements like electronics or things that are happening with games,” Narayen said in an interview on Mad Money.

    As a result of the decreased prices, especially in categories that have previously been hit hard by supply chain issues, Narayen believes digital shopping will continue at a healthy pace.

    “Nothing’s going to change as it relates to people saying, ‘I want to do digital engagement, I want to perhaps buy digitally, pick up physically and you know, the multi-channel thing,” he added.

    Narayen’s comments are some of the few elements of good news amid the economic uncertainty.

  • Microsoft Hiring Slows, Major Team’s Headcount Cut

    Microsoft Hiring Slows, Major Team’s Headcount Cut

    In yet another sign of an impending economic downturn, Microsoft has significantly cut hiring, impacting even high-profile teams.

    Business leaders across industries are warning about the state of the economy. JPMorgan CEO Jamie Dimon has even called the coming downturn a “hurricane,” the strength of which is still unknown. Microsoft appears to be taking the warnings seriously, significantly cutting its hiring efforts.

    According to Business Insider, the cuts are having a significant impact on Charlie Bell’s cybersecurity team. Bell was one of Microsoft’s most high-profile hires, poaching him from Amazon after a 23-year career there. While nothing was said about his role at the time, it was eventually revealed that Bell would lead a dedicated cybersecurity division.

    “After constructive discussions with Amazon, Charlie Bell started his new role on Oct. 11, focused on advancing cybersecurity capabilities that will benefit the tech sector and the broader economy,” a Microsoft spokesperson said.

    Bell’s team has now been cut to just 200 individuals, a far cry from the 4,000-strong organization Insider’s sources say was originally envisioned. Microsoft disputed that number, but did not clarify what the original number was. The company did say Bell’s team would likely grow to more than 1,000 in the coming fiscal year.

    “As Microsoft gets ready for the new fiscal year, it is making sure the right resources are aligned to the right opportunity. Microsoft will continue to grow headcount in the year ahead and it will add additional focus to where those resources go,” the spokesperson said.

  • JPMorgan CEO: ‘That Hurricane Is Right Out There’

    JPMorgan CEO: ‘That Hurricane Is Right Out There’

    JPMorgan CEO Jamie Dimon is warning of an economic hurricane, although how bad it will be is anyone’s guess.

    The economy has been rocked by supply chain issues, global shortages, rising gas prices, and skyrocketing inflation. Individuals and companies looking for good news were in for a disappointment, with Dimon warning an investor conference that a hurricane is coming, according to Forbes.

    “That hurricane is right out there down the road coming our way.” The CEO added, “We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”

    The warning is in stark contrast to the last few years, where federal stimulus programs helped usher in an era of free spending and the economy boomed in spite of a global pandemic. With those program ending, things are taking a much different turn.

    In addition, Dimon expressed concern about the possibility of the Russian invasion of Ukraine escalating, leading to further strain on the global economy.

    As Forbes notes, the indicators of a downturn are everywhere online, from increased numbers of available workers on LinkedIn to startup accelerator Y Combinator telling founders to start cutting costs.

    Here’s to hoping the coming hurricane a minor one and not the equivalent of Superstorm Sandy.

  • JPMorgan CEO Jamie Dimon Thinks Bitcoin is ‘Worthless’

    JPMorgan CEO Jamie Dimon Thinks Bitcoin is ‘Worthless’

    Bitcoin may be one of the hottest things in the tech and finance industries, but JPMorgan CEO Jamie Dimon is not a fan, calling it “worthless.”

    Dimon is a well-known critic of cryptocurrency, previously telling people he thinks they should “stay away from it.” He’s now gone even further, saying he thinks Bitcoin is “worthless,” according to Reuters.

    “I personally think that bitcoin is worthless,” Dimon said. “I don’t think you should smoke cigarettes either.

    “Our clients are adults. They disagree. If they want to have access to buy or sell bitcoin – we can’t custody it – but we can give them legitimate, as clean as possible access.”

    Dimon also believes significant government regulation is on the way, for a number of reasons.

    “No matter what anyone thinks about it, government is going to regulate it. They are going to regulate it for (anti-money laundering) purposes, for (Bank Secrecy Act) purposes, for tax,” Dimon said.

  • Banking Regulators Want Cryptocurrencies Governed by Strictest Rules

    Banking Regulators Want Cryptocurrencies Governed by Strictest Rules

    Global banking regulators are speaking out about cryptocurrency, saying it should be governed by the strictest rules in the interest of stability.

    Cryptocurrencies are rising in popularity and value, with companies the world over rushing to adopt them. El Salvador became the first country to adopt Bitcoin as legal tender, earlier this week, further adding to crypto’s rise.

    Many others, however, are less enthused and see crypto as a potential threat to the stability of the financial sector. According to The Guardian, the Basel Committee on Banking Supervision — made up of regulators from the world’s leading financial institutions — want a “new conservative prudential treatment” to ensure banks have enough capital to cover any and all losses they may suffer in the crypto market.

    “Crypto-assets have given rise to a range of concerns including consumer protection, money laundering and terrorist financing, and their carbon footprint,” the Basel Committee said. The committee added that the “growth of crypto-assets and related services has the potential to raise financial stability concerns and increase risks faced by banks.”

    The Basel Committee’s stand is a blow against crypto, and echoes the thoughts of JPMorgan CEO Jamie Dimon, who warned people to “stay away from it.” Like Dimon, the Basel Committee had a softer view of stable coins, viewing them as less volatile.

  • JP Morgan’s Twitter PR Act Was “A Bad Idea”

    JP Morgan’s Twitter PR Act Was “A Bad Idea”

    The person behind JP Morgan’s Twitter account thought it’d be a good idea to host “our first live Q&A on leadership & career advice w/a leading $JPM executive on 11/14.” Twitter users were prompted to use the hashtag #AskJPM to give direct questions to the senior executive. This prompted a handful of Twitter users to pick up their proverbial social media shaming sticks and beat the living tar out of the company’s PR front with questions concerning the bank’s morals and lack-thereof. Here’s how it went down: Timothy Connolly CFA started it off with a little play on the acronym of the company:

    Later, user amusebarf, perhaps unbeknownst to him, seemed to have alluded to Matthew 19:23-24 of the Bible, which states: “23 Then Jesus said to his disciples, “Truly I tell you, it is hard for someone who is rich to enter the kingdom of heaven. 24 Again I tell you, it is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God.” The principle, which tends to be universal, puts to light that greed only creates suffering, as it hordes more than enough for one’s self, inadvertently depriving others.

    User Jack Lord posted Jamie Dimon’s (the CEO of JP Morgan) rap sheet. Part of the document reads, “Since 2009, the Company has paid more than $8.5 billion in settlements for the various regulatory and legal problems discussed in this report. These settlement costs, which include a small number of recent settlementsof older issues, represent almost 12% of the net income generated between 2009-2012.”

    Lauren Tara LaCapra asked JP Morgan if Jimmy Lee, its investment banker, cheats at golf.

    David Dayen posted probably the most back handed question in the flurry of tweets. Not one JP Morgan corporate executive has been jailed.

     

     Phil Perspective added his perspective with an inquisitive question about the economy:

    Mike Conrad put JP Morgan on blast,

    Amy Hunter was curious about how much loss JP Morgan would have to take in order to go under.

    The other 98% wanted to know how JP Morgan felt after getting away with fraud.

    Schoun with a little history lesson:

    Charlotte curious about the underreported talents of JP Morgan:

    David Dayen again, this time accusing JP Morgan having a hand in funding drug cartels:

    Alexis Goldstein wanted to know if the collection of fines that the bank has to pay is a source of pride.

    Kevin Murphy was curious about what makes a person want to join a morally bankrupt institution:

    Eddy Elfenbein needed some advice on keeping his linens fresh:

    Having suffered a blow to their character and unable to respond to the hardline questions, J.P. called it quits:

     

    (Pictures via WikiCommons, Twitter)

     

  • Jamie Dimon Steps Down as JP Morgan Chairman

    Jamie Dimon has stepped down from his position as chairman with JP Morgan the countries largest banking institution. His actions have resulted in an investigation with the federal government and a settlement that lead to a painful loss for JP Morgan. This loss is the first one publicized or admitted to under Dimon’s watch throughout  his 10 years as chairman.

    During 2013 Dimon has faced 7 separate investigations held by the Justice Department. As a direct result JP Morgan faces possibly paying back $ 11 billion dollars. This amount is completely dedicated to fines.

    The public has asked who will be held to some type of accountability for the loss of money.  JP Morgan is also now responsible for paying $ 410 million dollars in forfeited profit and penalties directly to the Federal Energy Regulatory Commission.

    The London Whale resulted in the nations largest bank to lose approximately $ 6 billion dollars in trading losses. The regulators had to be paid out $ 920 million dollars. This amount was decided upon during the active  investigation by the Justice Department and Commodity Futures Trading Commission.

    Normal people who follow financial news felt that Dimon should have gracefully left this position several months ago.

    For the past few years JP Morgan has been paying for the best legal representation that their money can buy.  JP Morgan has spent more than $21.3 billion dollars since 2008 on legal bills. The recent exposure of their true financial plight has resulted in boosting their legal representation.  JP Morgan is now paying more money in legal fees currently than for all of its employees salaries combined. This amounts to $ 9.3 billion dollars in legal expenses for the past quarter in 2013.

     

    Online jokes regarding the way Dimon has handled the resources of JP Morgan are floating around online.

     


    Image via Facebook

  • Linda Bammann, Michael Neal to Join JPMorgan Board

    On Monday, JPMorgan Chase & Co. released a statement announcing the Board of Directors’ intent to elect Linda B. Bammann and Michael A. Neal on as directors. Jamie Dimon, Chairman and CEO of JPMorgan Chase, stated, “Linda and Mike are proven leaders and will bring outstanding risk, finance and management experience to our Board and to our firm.”

    The move was anticipated since at least last month. JPMorgan Chase is the largest US bank and has faced some recent regulatory scrutiny. Dimon says that the bank has prioritized improving regulatory compliance and internal controls this year.

    In another personnel move, Lee Raymond, a past director, has been named Lead Independent Director. Raymond’s new position is a more powerful one, apparently allowing him to call meetings any time, approve agendas and add to them at will. He is also expected to guide the Board in decisions on CEOs.

    Bammann’s anticipated election is for 16 September when she will also become part of the Board’s Risk Policy Committee. Her previous positions were Deputy Head of Risk Management at JP Morgan Chase and as Chief Risk Management Officer at Bank One Corporation (now a part of JPMorgan Chase) where she served under Dimon. Bammann, who is 57, retired in 2005. Her post-retirement service on other Boards includes Director of The Federal Home Loan Mortgage Corporation (Freddie Mac), member of the Risk Management Association and Chair of the Loan Syndications and Trading Association.

    Neal, 60, will step down from his current position as Vice Chairman of General Electric Company before joining the JPMorgan Chase Board in January 2014. Neal has been a committed GE officer since 1979. His positions there have included President and COO of GE Capital, CEO of GE Commercial Finance and Chairman and CEO of GE Capital starting in 2007.

    [Image via JP Morgan Chase Official Website.]