At the start of the trading week, JPMorgan Chase & Co. (NYSE:JPM) is up 1.37% already. With Jamie Dimon seemingly secure now in his dual roles of CEO and COB, this healthy start to the week may signal a return to business as usual for the country’s biggest bank — and potentially beyond.
Last week was a big one for JPMorgan Chase & Co. (NYSE:JPM) and its longtime boss. Dimon faced the biggest crisis of his professional life: a proxy vote that could have compelled the board to strip him of his role as chairman.
But with Dimon winning the vote as decisively as he did, a major distraction to top management, employees, and shareholders has been just as decisively removed.
Foolish bottom line
Investors had a right to worry over the fate of Dimon. He’s done nothing but deliver since he became CEO in 2005 and COB in 2006: record profits for the last three years, a fortress balance sheet, and deft maneuvering that allowed the bank to come through the financial crisis in arguably better shape than it went in.
Dimon had hinted that, if he lost the vote and the board stripped him of his role of COB, he might leave. Anything can happen, and the board can technically strip him of his role of chairman — or CEO for that matter — anytime it wants to, but that seems highly unlikely now. Last Tuesday was the big showdown, and Dimon came out on top.
As a result, the bank can get back to business now, and maybe investors are putting their money where their forward-looking thoughts are. Of course, it’s worth noting that all of the Big Four banks are up today, along with the three major market indices, and JPMorgan Chase & Co. (NYSE:JPM) may just be along for the ride.
Investing Foolishly means thinking long term: tuning out market noise and tuning into the fundamentals of the companies you’re invested in. So take any analyst’s opinion with a grain of salt.
That said, I do believe there’s an extra component at work here: The good feeling of knowing the person who should be at the top — the person who got you, me, and every other JPMorgan Chase & Co. (NYSE:JPM) investor there — is still there.
The article Is There More to JPMorgan’s Stock Jump Than Meets the Eye? originally appeared on Fool.com is written by John Grgurich.
Fool contributor John Grgurich owns shares of JPMorgan Chase. Follow John’s dispatches from the not-so-muddy trenches of high-finance and big-banking on Twitter @TMFGrgurich. The Motley Fool owns shares of JPMorgan Chase.
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