Jamie Dimon: 2012

Saturday, July 28, 2012

CNBC TRANSCRIPT: CNBC’S KATE KELLY SPEAKS WITH JPMORGAN CEO JAMIE DIMON TODAY

Published: Friday, 27 Jul 2012 | 1:54 PM ET

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By: Jennifer Dauble

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WHEN: TODAY, FRIDAY, July 27, 2012

WHERE: CNBC

Following are excerpts from the unofficial transcript of CNBC’s Kate Kelly’s interview with JPMorgan CEO Jamie Dimon that aired on CNBC’s “Squawk on the Street” and CNBC’s “Fast Money Halftime Report” today. All references must be sourced to CNBC.

“SQUAWK ON THE STREET”:

VIDEO: http://video.cnbc.com/gallery/?video=3000105831&play=1

KATE KELLY: I JUST HUNG UP WITH JAMIE DIMON THE CEO OF COURSE OF JPMORGAN WHICH ANNOUNCED A MAJOR REORGANIZATION TODAY. PROMOTIONS AND NEW ROLES FOR A NUMBER OF EXECUTIVES AND ESSENTIALLY WHAT IT'S DOING IS SETTING UP A BIT OF A SUCCESSION RACE FOR JAMIE DIMON WHO SAID A FEW THINGS ABOUT HIS DESIRE TO STAY ON WITH THE COMPANY BUT ALSO. SAID THE RESPONSIBLE THING TO DO, OF COURSE, IS TO NAME THE NEXT GENERATION OF LEADERSHIP WHICH IS ONE THING HE'S TRYING TO DO TODAY. WHEN I TALKED TO HIM, I SAID WHAT ARE YOUR THOUGHTS FOR STAYING ON. HE SAID, WHAT’S YOUR TENURE GOING TO BE WITH THE COMPANY AND THE FUTURE AND HE SAID I HOPE BE HERE MANY, MANY MORE YEARS. I DON'T THINK OF THIS AS AN IMMEDIATE SUCESSION THING. HOWEVER, HE SAID, AGE IS A FACTOR IN ALL THIS. HE WANTS TO COME UP WITH YOUNGER FOLKS WHO CAN BE IN THE ROLE FOR A NUMBER OF YEARS TO COME IF AND WHEN HE DOES RETIRE. AND OF COURSE HE NOTED THAT HE SERVES AT THE PLEASURE OF THE BOARD AND HE SAID, QUOTE, THESE JOBS TAKE EMOTIONAL AND PHYSICAL DRAINS ON PEOPLE. I THINK THE RIGHT THING IS THAT IT SHOULD GO TO PEOPLE WHO CAN DO THE JOB FOR 10 OR 15 YEARS. SO IN SO DOING WE TALKED A LITTLE BIT ABOUT THE PRESS RELEASE TODAY AND WHO HE'S PUTTING IN SOME OF THE KEY ROLES. MATT ZAMES, SOMEONE TO DEFINITELY KEEP AN EYE ON. MATT IS NOW THE CO-COO OF THE ENTIRE FIRM HE'S REALLY RISEN LIKE A ROCKET IN THE LAST YEAR OR SO. HE WAS THE GLOBAL CO-HEAD OF FIXED INCOME. AND THEN WHEN THE LONDON WHALE FLAP SITUATION OCCURRED HE WAS ASKED TO TAKE OVER THE CHIEF INVESTMENT OFFICE ROLE ALONG WITH DANIEL PINTO HIS COLLEAGUE WHO HAD OVERSEEN THE EUROPEAN OPERATIONS WITH HIM FOR A NUMBER OF YEARS.SO THEY WERE DOING THAT JOB TOGETHER. SO MATT ZAMES IS SOMEONE WHO IS 44 YEARS OLD, REGARDED AS A POSSIBLE SUCCESSOR TO JAMIE. AS WELL WE TALKED ABOUT MIKE CAVANAUGH, HE WAS THE CFO FOR THE COMPANY FOR A NUMVER OF YEARS HE'S NOW BEEN PROMOTED TODAY AS WELL. MIKE IS SOMEONE THAT JAMIE THINKS VERY HIGHLY OF WE SPENT SOME TIME TALKING ABOUT HIM TOO. SO A NUMBER OF INTERESTING NEW FACES AT THE HELM HERE, MELISSA, AND THINK IT WILL BE WORTH KEEPING AN EYE ON WHAT GOES ON WITH THESE GUYS. SOME OF THEM HAVE TAKEN VERY BIG STEPS IN A SHORT PERIOD OF TIME. THE OTHER THING IS I TALKED TO JAMIE A LITTLE BIT ABOUT GLASS-STEAGALL AND A LITTLE BIT ABOUT THE LONDON WHALE MORE ON THAT IN FAST MONEY HALFTIME REPORT.

“FAST MONEY HALFTIME REPORT”:

VIDEO: http://video.cnbc.com/gallery/?video=3000105840&play=1

SCOTT WAPNER: BIG NEWS TODAY. JPMORGAN ANNOUNCING A BIG RESHUFFLE AMONG TOP MANAGERS THAT REPORT TO CEO JAMIE DIMON. CNBC’S KATE KELLY SPOKE TO THE BANK CHIEF A LITTLE WHILE AGO. SHE JOINS US NOW WITH THE DETAILS. I WANT TO HEAR ALL ABOUT THIS CONVERSATION, KATE.

KATE KELLY: INTERESTING NEWS THIS MORNING OUT OF JPMORGAN, SCOTT. IN TERMS OF REORGANING THE BANK AS A WHOLE AND ALSO ELEVATING A BUNCH OF FOLKS WHO ARE NOW SOMEWHAT OFFICIALLY IN THE RUNNING TO SUCCEED DIMON. I TALKED TO HIM ABOUT THAT THIS MORNING BUT WE ALSO TOUCHED ON THE NOW INFAMOUS CREDIT DERIVATIVES TRADE GONE AWRY THE SO-CALLED LONDON WHALE AND I WAS A BIT SURPRISED BY THE CONFIDENT TONE I HEARD. DIMON SAID THAT THE MORNING ANNOUNCEMENT DESPITE PROMOTING THE TWO GUYS WHO WERE TASKED WITH CLEANING UP AFTER THE WHALE AMONG OTHERS HAD NOTHING DO WITH THE TRADING DEBACLE AND THEN INSTEAD WERE MOVING ON TO THE NEXT STEP AND THAT HE IS FEELING GOOD ABOUT WHERE THEY STAND WITH THE TRADE UNWIND. I ALSO ASKED DIMON TO WEIGH IN ON WHAT'S BECOME A NATIONAL DEBATE SINCE WEDNESDAY WHEN WE HAD FORMER CITI CHIEF SANDY WEILL ON OUR AIR WHICH THE DEBATE CENTERS OF COURSE ON WHETHER TO REINSTATE THE GLASS-STEAGALL ACT WHICH PREVENTED INVESTMENT AND COMMERCIAL BANKS FROM BEING HOUSED UNDER ONE ROOF. DIMON, OF COURSE, WAS WEILL'S PROTÉGÉ AT CITIGROUP AND WAS FOR MANY YEARS REGARDED AS HIS HEIR APPARENT THEIR UNTIL DIMON WAS OUSTED AMID A MANAGEMENT CHANGE-UP LEADING OF COURSE TO HIS CURRENT ROLE EVENTUALLY. DIMON WHO HAS DEFENDED THE FUSION OF COMMERICAL AND INVESTMENT BANKING REFUSED TODAY TO JUMP INTO THE FRAY OFFICIALLY BUT HE DID SAY HE AGREED WITH WHAT FORMER WELLS FARGO CEO DICK KOVACEVICH SAID ON SQUAWK BOX THIS MORNING

SOT:

DICK KOVACEVICH: THE CRAZY THING ABOUT DODD FRANK LETS FACE IT THIS CRISIS WAS CAUSED BY ABOUT A HALF A DOZEN INVESTMENT BANKS AND ABOUT 2 DOZEN S&LS THERE'S ONLY ONE COMMERCIAL BANK THAT WAS INVOLVED IN PERPETRATING THIS CRISIS AND YET 8,000 COMMERCIAL BANKS ARE BEING REREGULATED FOR DOING NOTHING WRONG. AND WHAT WE NEED TO DO IS CLEAN UP THE INVESTMENT BANKING SIDE OF THINGS AND GET THE EXCESSIVE PRORIETARY TRADING AND INVESTMENTS OUT OF INVESTMENT BANKS.

KELLY: NOW, SCOTT, I'M NOT POSITIVE BUT I HAVE A FEELING THAT ONE COMMERCIAL BANK HE WAS ALLUDING TO WAS PROBABLY CITIGROUP RIGHT OF COURSE WEILLS FORMER BANKS AND DIMONS FORMER PLACE OF EMPLOYMENT SO A LITTLE BIT OF AN INDUSTRY SHUFFLE HERE ALTHOUGH DIMON IS TRYING VERY MUCH TRYING TO STAY ON THE SIDELINES.

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Sunday, July 1, 2012

Meet Jamie Dimon’s Twin Brother: Mind-Body Expert

(Credit: Amanda Gordon/Bloomberg via Getty Images | Mark Wilson/Getty Images)

Theodore Dimon, Jr., Ed.D., the twin brother of Jamie Dimon, CEO of JPMorgan Chase, built his career as an educator exploring the workings of the human body while his brother trekked up the corporate ladder to lead the largest bank in the U.S.

The twin Dimon brothers and older brother, Peter, grew up in Jackson Heights, Queens and Manhattan, raised by Greek American parents, according to Duff McDonald, author of “Last Man Standing,” a biography about Jamie Dimon. Though the close-knit family had a history of bankers, Jamie Dimon was the only to pursue a business career.

Ted Dimon, as described on his website, studied at the Constructive Teaching Centre in London and received a Masters and Doctorate in Education from Harvard. He established The Dimon Institute in New York City in 1996.

The Dimon Institute “is dedicated to the scientific and practical exploration of man’s unique psychophysical design, and to a holistic and conscious way of living based on an understanding of this design,” according to the institute’s website.

Dimon has written several books, including “The Body in Motion: Its Evolution and Design,” and “Your Body, Your Voice: The Key to Natural Singing and Speaking.” He declined to be interviewed.

His institute promotes the Alexander Technique, an educational method that teaches through lessons how to change bad posture habits and improves mobility and alertness, according to the American Society for the Alexander Technique.

Dancers, singers, musicians are described as using the technique to improve breathing, speed, and “accuracy of movement,” according to the society. The technique is named for F.M. Alexander (1869-1955), an Australian actor who taught himself about excess tension in his neck and body that contributed to chronic laryngitis, according to AlexanderTechnique.com.

Jill Geiger, information manager at the American Society for the Alexander Technique, said the technique is not physical therapy by any means.

“The Alexander Technique is a century-old educational method that teaches coordination of movement, posture and breathing,” she said. “Its effectiveness in relieving back pain for the long term is supported by published research.”

Dr. Brent Bauer, director of the complementary and integrative medicine program at the Mayo Clinic, said many of his patients have found benefits from the technique from a host of symptoms, “especially back pain, neck pain and quite a few with headaches.” He said the technique is also offered to some degree to the employees at the clinic’s wellness center.

According to Bauer, the technique is one of the complementary and alternative medicine (CAM) modalities that isn’t quite as well known as some of the “stars,” like acupuncture, massage or meditation.

“But I would put it in the class of “not widely known but gaining popularity quickly”,” he said, adding that there are “quite a few studies” and positive evidence that point to an effect on back pain.

A review published in the International Journal of Clinical Practice in January found “strong evidence exists for the effectiveness of Alexander Technique lessons for chronic back pain and moderate evidence in Parkinson’s-associated disability.”

ABC News’ Dan Childs and Katie Moisse contributed to this report.

Thursday, June 28, 2012

JPMorgan Trading Loss May Reach $9 Billion

BY JESSICA SILVER-GREENBERG AND SUSANNE CRAIG

Jamie Dimon, chief executive of JPMorgan Chase, discussed the deal last week before the House Financial Services Committee.

Daniel Rosenbaum for The New York TimesJamie Dimon, chief executive of JPMorgan Chase, discussed the deal last week before the House Financial Services Committee.

Losses on JPMorgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.

When Jamie Dimon, the bank’s chief executive, announced in May that the bank had lost $2 billion in a bet on credit derivatives, he estimated that losses could double within the next few quarters. But the red ink has been mounting in recent weeks, as the bank has been unwinding its positions, according to interviews with current and former traders and executives at the bank who asked not to be named because of investigations into the bank.

The bank’s exit from its money-losing trade is happening faster than many expected. JPMorgan previously said it hoped to clear its position by early next year; now it is already out of more than half of the trade and may be completely free this year.

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As JPMorgan has moved rapidly to unwind the position — its most volatile assets in particular — internal models at the bank have recently projected losses of as much as $9 billion. In April, the bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion, according to a person who reviewed the report.

With much of the most volatile slice of the position sold, however, regulators are unsure how deep the reported losses will eventually be. Some expect that the red ink will not exceed $6 billion to $7 billion.

Nonetheless, the sharply higher loss totals will feed a debate over how strictly large financial institutions should be regulated and whether some of the behemoth banks are capitalizing on their status as too big to fail to make risky trades.

JPMorgan plans to disclose part of the total losses on the soured bet on July 13, when it reports second-quarter earnings. Despite the loss, the bank has said it will be solidly profitable for the quarter — no small achievement given that nervous markets and weak economies have sapped Wall Street’s main businesses. To put the size of the loss in perspective, JPMorgan logged a first-quarter profit of $5.4 billion.

More than profits are at stake. The growing fallout from the bank’s bad bet threatens to undercut the credibility of Mr. Dimon, who has been fighting major regulatory changes that could curtail the kind of risk-taking that led to the trading losses. The bank chief was considered a deft manager of risk after steering JPMorgan through the financial crisis in far better shape than its rivals.

“Essentially, JPMorgan has been operating a hedge fund with federal insured deposits within a bank,” said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner.

A spokesman for the bank declined to comment.

In its most basic form, the losing trade, made by the bank’s chief investment office in London, was an intricate position that included a bullish bet on an index of investment-grade corporate debt. That was later combined with a bearish wager on high-yield securities.

The chief investment office — which invests excess deposits for the bank and was created to hedge interest rate risk — brought in more than $4 billion in profits in the last three years, accounting for roughly 10 percent of the bank’s profit during that period.

In testimony before the House Financial Services Committee last week, Mr. Dimon said that the London unit had “embarked on a complex strategy” that exposed the bank to greater risks even though it had been intended to minimize them.

JPMorgan executives are briefed each morning on the size of the trading loss. The tally could shrink if the market moves in JPMorgan’s favor, the people briefed on the situation cautioned.

But hedge funds and other investors have seized on the bank’s distress, creating a rapid deterioration in the underlying positions held by the bank. Although Mr. Dimon has tried to conceal the intricacies of the bank’s soured bet, credit traders say the losses have still mounted.

While some hedge funds have compounded the bank’s woes, others have been finding it profitable to help JPMorgan get clear of the losing credit positions.

One such fund, Blue Mountain Capital Management, has been accumulating trades over the last couple of weeks that might help reduce the risk of the bets made by JPMorgan in a credit index, according to interviews with more than a dozen credit traders. The hedge fund is then selling those positions back to the bank. A Blue Mountain spokesman declined to comment.

As traders in JPMorgan’s London desk work to get out of the huge bet, which started generating erratic losses in late March, the traders based in New York are largely sitting idle, according to current traders in the unit.

“We are in a holding pattern,” said one current New York trader who asked not to be named.

Long before the losses started mounting, senior executives at the chief investment office in New York worried about the trades of Bruno Iksil, according to the current traders.

Now known as the London Whale for his outsize wagers in the credit markets, Mr. Iksil accumulated a number of trades in 2010 that were illiquid, which means it would take the bank more time to get out of them.

In 2010, a senior executive at the chief investment office compiled a detailed report that estimated how much money the bank stood to lose if it had to get out of all Mr. Iksil’s trades within 30 days. The senior executive recommended that JPMorgan consider putting aside reserves to deal with any losses that might stem from Mr. Iksil’s trades. It is not known how much was recommended as a reserve or whether Mr. Dimon saw the report, but the warning went unheeded.

The losses are the most embarrassing fumble for Mr. Dimon since he became chief executive in 2005.

In appearances before Congress, Mr. Dimon has taken pains to assure investors and lawmakers that the overall health of JPMorgan remained strong and that it had more than sufficient amounts of capital to weather any economic dislocation.

Even as he apologized for the trade, calling it “stupid,” Mr. Dimon emphasized to lawmakers that the loss was an “isolated incident.”

The Federal Reserve is currently poring over the bank’s trades to examine the scope of the growing losses and the original bet.

REPORT: Boaz Weinstein Is Said To Exit The Trade That Crushed JPMorgan

Julia La Roche | 944 |

The man who harpooned the London Whale.

Saturday, July 28, 2012

Sunday, July 1, 2012

Thursday, June 28, 2012

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