Will JPMorgan’s Losses Be Much Ado About Nothing?
Jamie Dimon steered JPMorgan Chase & Co. (NYSE: JPM) through the financial crisis in 2008, by-and-large faring better than the competition. In spite of third quarter loses of $380 million, he is still manning the helm as the company navigates past the murky waters caused by multiple legal battles, including the disastrous “London whale” trade.
Michael Hiltzik at the Los Angles Times rhetorically asks how this bullet-dodging is possible. Hiltzik sees Dimon as an accomplice to the bank’s legal troubles because Dimon has not stepped in to change management after a crisis, overseeing all and doing nothing. Hiltzik attributes Dimon’s staying power to the stock’s 61 percent increase since he became CEO in 2006.
Share growth is important, but the financial community is hardly shrugging off the loss or future litigation costs. The report from the third-quarter is seen by many as a major blow to the company. Even within the company, the steep price has been acknowledged. The $9.2 billion in litigation costs was described on yesterdays earnings call by Chief Financial Officer Marianne Lake as “much more significant than we expected until very recently.”