"No man can become rich without himself enriching others"
Andrew Carnegie



Wednesday, July 11, 2012

Dimon Risk Reputation on Line as JPMorgan Faces Analysts

JPMorgan Chase Tower
JPMorgan Chase Tower (Photo credit: Kent Wang)
Jamie Dimon will seek to restore investor confidence this week after a trading loss wiped out $39 billion of JPMorgan Chase & Co. (JPM)’s market value and marred his reputation as one of the industry’s best risk managers.
In a departure from his customary earnings-day conference call, Dimon will meet analysts for two hours on July 13 at the bank’s New York headquarters to field questions about the loss and what he’s doing to contain the damage. The firm also is being probed over the possible gaming of U.S. energy markets and was subpoenaed in global investigations of interest-rate fixing.
There has been a “sudden change of perception in the company,” said Nancy Bush, an analyst and contributing editor at SNL Financial LC, a research firm based in Charlottesville, Virginia. “I’ve been watching banks for 30 years now and when they lose the luster, it is extremely hard for them to get it back, particularly when you have someone who was built up and lionized like Dimon.”
Bush said the 56-year-old chief executive officer did an “admirable job of saying nothing” when he appeared before Congress twice last month to testify about the trading loss, which stemmed from bets on credit derivatives at the firm’s chief investment office in London. “But I don’t know if that can go on,” Bush said. ... Continue to read.
Enhanced by Zemanta