JPMorgan Chase & Co. (JPM): Be Careful What You Wish For

Page 1 of 2

The hunt is on, and the witch is Jamie Dimon: CEO and chairman of JPMorgan Chase & Co. (NYSE:JPM) and the fallen angel of big banking. Once the president’s favorite Wall Street titan, Dimon is now everyone’s favorite Wall Street whipping boy.

JPMorgan Chase & Co. (NYSE:JPM)

Dimon is currently the target of a proxy vote that advocates stripping him of the role of bank chairman, the outgrowth of last year’s London Whale trading scandal. The vote is non-binding, but there’s been such a press from outside investor-advisory firms, and such an unrelenting media crush on the subject, that a majority vote could force the board to take the proposed action.

Here are three reasons Dimon’s dual role at JPMorgan Chase & Co. (NYSE:JPM) should remain unchanged, and why the board should seriously consider restoring the $10 million that was stripped of him for his performance in 2012, if not actually raise his pay.

1. Record profit and more record profit
For the first quarter of 2013, JPMorgan reported net income of $6.5 billion – a record. For 2012, JPMorgan Chase & Co. (NYSE:JPM) made $21.3 billion in net income — another record, and the bank’s third year in a row of record income.

When it comes to profit, then, JPMorgan Chase & Co. (NYSE:JPM) has unarguably delivered under the leadership of Jamie Dimon. Investors should be shedding tears of joy over results like this.

2. Enviable stock performance
Investors should continue shedding tears of joy. Year to date, JPMorgan stock has returned 11.42%. In the past year, it’s returned 22.44%. In 2012, it returned 25.7%. For the same periods, Wells Fargo & Co (NYSE:WFC) stock returned 9.7%, 17.84%, and 20.23%, respectively.

For the time period Dimon is being crucified for, he’s done nothing but deliver when it comes to share-price appreciation.

3. Enviable risk-management skills
Yes, this can said with a straight face even in light of the London Whale trading scandal. In fact, said scandal may help make the case. But first, the financial crisis.

Dimon is famously risk averse, and it’s this aversion to risk that kept the bank strong throughout the financial crisis, as well as after. JPMorgan Chase & Co. (NYSE:JPM) was so strong, in fact, it was able to absorb the quickly imploding Bear Stearns at a moment’s notice and stave what probably would otherwise have been an early start to the economic crash.

Bank of America Corp (NYSE:BAC) or Citigroup Inc (NYSE:C) took much more risk in the housing boom, suffered much more damage in the crisis, and would have almost certainly gone under without help from the federal government.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!