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New Banking Rules Have Not Hurt Jamie Dimon

Posted by Larry Doyle on June 8, 2011 12:20 PM |

When do you know that somebody is tone deaf?

Those with any measure of ‘sense on cents’ know when an individual is tone deaf. How so?

When said individual racks up compensation in the multiple tens of millions of dollars from an industry that was bailed out by taxpayer funds and then complains about changes in regulatory oversight, you know that individual is tone deaf.

To whom do I refer? Welcome to the world of JP Morgan CEO Jamie Dimon. I have long respected Dimon for his intellect, attention to detail, risk management skills, and general corporate integrity. He and his colleagues at JP Morgan are far from perfect. That said, relative to other executives with whom I have crossed paths on Wall Street, Dimon is far superior. I know, I know that assessment is very relative.

Many Wall Street execs do not rate highly in comparison to shoeshine guys or those in the carting business, said with all due respect to individuals in those lines of work.

All this said, I am more than willing to call Dimon on the carpet when I believe he is out of line and does not hear the message and the tone of what is transpiring in America.

Jamie Dimon truly displays some set of balls whining about new and prospective increased banking regulations in our nation today. He laid his balls out for all to see just yesterday. The Wall Street Journal highlighted his ‘stones’ in writing, CEO Tells Fed Chief New Rules Hurt Banks,

The most pointed comments Tuesday came from Mr. Dimon, who has been vocal about the effect regulatory changes are having on the banking industry. Ticking off a list of changes to financial markets over the past three years, Mr. Dimon said he feared someone would write a book soon about how government overreach had hurt the economic recovery.

Hurt the economic recovery? Well have they hurt JP Morgan and Jamie Dimon personally? I do not think so and I have ‘multiple tens of millions of reasons’ to show that they have not. What are they? Dimon’s compensation.

As The New York Times recently highlighted, JP Morgan Paid Dimon $20.8 Million in 2010,

JPMorgan Chase paid Jamie Dimon, its chief executive, a total of $20.8 million last year,….JPMorgan noted that its calculation of Mr. Dimon’s 2010 compensation did not include the$17 million in restricted stock and options that he was awarded in February for his performance last year.

The big increase in Mr. Dimon’s compensation came in a year in which JPMorgan’s annual earnings jumped 48 percent, to $17.4 billion.

Mr. Dimon’s total compensation is still well below the $35.8 million he received in 2008, according to the filing.

If my math is accurate, those figures tally up to in excess of $70 million in total compensation over the last three years. Clearly new and prospective regulations for Wall Street are not hurting Jamie Dimon.

How is it that Jamie can benefit to this extent?

See, Jamie Dimon and many other senior executives within the Wall Street hierarchy are benefiting like never before from the oligopoly that defines Wall Street currently. With lessened competition and a perpetuation of self-regulation within its brokerage activities, JP Morgan and its cohorts on Wall Street continue to rack up perfect or near perfect trading results in terms of daily profitability. (Defined as making money each and every day).

I can assure you that in a normal market environment, no bank would generate these sort of results.

Time for Jamie Dimon to take a trip to middle America and get a dose of reality before whining about banking regulations. While he is at it, he may want to talk to some people about the 13-30% rates of interest Chase charges on its credit cards.

“Jamie, welcome to the real world!! Navigate accordingly.”

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Milo

    You totally missed the point or the point that matters. Dimon did not complain about his compensation but about the potential negative effects on the US economy of over regulating US banks. He simply asked if the FED or anybody else has looked into it. Do you care about how much Dimon is paid or the US economy?

    • LD


      …I’m not that dense. You missed my point.

      With Dimon and JPM printing $$$, who is he to complain that banks are being hurt by regulations. Man up, Jamie. Dimon wants to play offense because banks have been put on the defensive by many in America who have been abused by the industry.

      Wall Street and Main Street are two decidedly different worlds at this point. Dimon does not get that or appreciate that.

      Additionally, do you want to have the debate as to how weak and ineffective the self-regulation of Wall Street by FINRA (Financial Industry Regulatory Authority) truly is. Before we do that, you will be busy but you may want to dive into this, Sense on Cents/FINRA.

      Additionally take a large bite out of this apple, Wall Street-Washington Incest.

      I would welcome hearing your thoughts and Mr. Dimon’s as well in regard to the travesties embedded in the ineffectual regulatory aspects of these stories.


  • Charles

    Would a “common criminal” want regulations on the how, when, and where’s of how they held up the US Taxpayer and drained him or her of their wealth? NO.

    Why do you think these criminals in suits are any different?

  • James

    Mr. Dimon should read 13 Bankers by Simon Johnson and James Kwak and then he may care to issue his opinion on the state of banking in our nation today.

    “If banks are ‘too big to fail’, then make them smaller.”

  • comic65

    Wall Street played the central role in creating the recession due to their greed. Now that there is an attempt at creating additional regulation to restrain their greed, they are the victims?!

    Ask all the people out of work what they think! Jamie Dimon, stop WHINING!

  • Ricky Parks

    The JPMC board should do the right thing in this situation and say”Mr. Dimon……you’re fired”.He has become way too much of a liability with his New York mouth.Not to mention the cost requirements(i.e……compensation and salary) that he requires.

    JP Morgan Chase is about to get a real dose of reality in the coming months,along with wall street in general.

    My question is,”What will you do this time when the American taxpayers WON”T bail you out?”The Fed and the Federal government don’t have the money this time to help you,thus your demise is inevitable.I hope the 70 million dollars that we(taxpayers) have given you is enough to carry you through.

    As I said before,wall street lives by the GREED CREED.”Screw unto others and blame everybody else”MY ADVISE TO YOU,MR.DIMON…….SIT BACK AND SHUT UP”.

  • Peter Sivere

    What does the average American think about this? Legally it is probably fine but why not pick up the measley commission fee?

  • Peter Sivere

    Dimon has never been known for his subtlety. Known to harangue employees for overspending and openly disparage senior execs in big meetings, he’s a notoriously tough manager. Money magazine once reported that he was furious when he found out just how many newspaper subscriptions were paid for by the company. “You’re a businessman. Pay for your own Wall Street Journal,” he reportedly told an executive. Dimon’s tightfistedness apparently extends to his personal life, too. According to friends, he continued to wear ragged Citigroup-emblazoned t-shirts long after the bank had fired him.

  • Peter Sivere

    Jamie is married to Judith Kent Dimon, whom he met at business school. (His less-than-smooth pickup line: “I’m going home, and I want you to go with me.”) They have three daughters and reside at 1185 Park Avenue; Dimon reportedly installed extensive soundproofing for the apartment so the neighbors aren’t bothered by his habit of blasting Frank Sinatra tunes on his library’s sound system. They also own a house in Bedford Corners, NY. Their Chicago mansion went on the market for $10.5 million in 2009.

  • Peter Sivere

    Pay for your own WSJ but I will let the shareholders pay $400,000+ in real estate commission so I can move to Park Avenue. Where have all our leaders gone? They are overseas fighting to keep JD happy. America wake up!

  • black swan

    How much wealth is enough for Jamie Dimon, who is already worth between two and three billion dollars? There is no limit for a man who only lives for one thing–MORE.

    Does it bother him that he and his cronies have turned the USA into a giant shell corporation? Not if it allows him to get MORE. For someone who lives his life in the pursuit of MORE, there is no such thing as ENOUGH.

  • libknot

    All I know is that I work for one of the top 6 banks and we got the news last week that our pay is being cut in half!

    I’m mad as hell but not sure who I should be mad at! Obama & his gang of thieves or the CEO’s & their gang of thieves?

    This country is out of control…..the fat cats are out of control AND our government is out of control!

    The little guy can’t & won’t take much more!

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