It’s like clockwork. J.P. Morgan makes headlines for all the wrong reasons – trading losses, scandals, poor quarterly results – and verbal sparring breaks out between supporters and detractors of Chief Executive Jamie Dimon. And each time, it’s the people who have financial ties to J.P. Morgan who continue to back Dimon through difficult times.
First there was the “London Whale” trading fiasco, which cost the bank $6.2 billion and dozens of employees their jobs. Dimon was caught being less-than-forthright before Congress, yet he held his job while others close to him fell by the wayside.
Months later, activist investors tried to strip Dimon of his chairmanship. Fewer shareholders supported the measure than they did the previous year, before news of the scandal broke. Instead, three directors were pushed aside.
And now, just days after J.P. Morgan reported its worst quarter in nearly a decade, the first public board member reaction is what you might expect: adoration for Jamie Dimon. “He’s the best manager I’ve ever seen, and I’m old,” said 71-year-old board member Laban Jackson, who pointed blame at a group of “renegades” inside the firm’s Chief Investment Office. “He has, as we all do, flaws,” Jackson said of Dimon.
Why the ever-enduring support? There are hundreds of millions of reasons. In the third quarter of 2012, before litigation costs ripped through the bank’s balance sheet, J.P. Morgan booked a profit of $5.71 billion. That certainly makes the $380 million loss during this year’s Q3 a bit more palatable for people who have a vested interest in the bank. Just marginalize the ongoing legal problems and Dimon is back to being the top dog on the Street, shareholders and board members believe.
Ask Away! (eFinancialCareers)
Do you want to work for Deutsche Bank’s corporate and investment bank? Faye Woodhead, Deutsche’s head of graduate recruitment globally, has agreed to respond to some of your questions on graduate jobs and internships.
No Longer Attractive? (WSJ)
With Warren Buffett now in his mid-80s, analysts have begun to wonder whether top executives will continue to want to take jobs at Berkshire Hathaway (or other companies owned by Buffett) as it’s his unique hands-off management style that makes the job so great. Berkshire has had recent problems finding replacements for outgoing group CEOs.
Regulatory Hiring Overseas (WSJ)
The European Central Bank is expected to gain final approval to become the new banking supervisor in the Euro zone. Hundreds of regulatory hires should follow.
No Ban, No Advertising (Financial Times)
For the first time in nearly a century, hedge funds are legally allowed to advertise their services. So far, few major firms have embraced the option, calling advertising a potential sign of weakness when it comes to attracting capital.
Twitter Low-Balling Bankers (Bloomberg)
If you know one of the bankers working on the Twitter IPO, don’t be too envious. The social media site is likely paying them only half the traditional fee due to competition over the role.
Slinging Warhols (DealBook)
With legal bills rising, SAC Capital founder Steven Cohen is selling stocks and high-priced pieces of art to meet some withdrawal requests.
Buzz Around the Office
728-Point Turn (MSN)
Enjoy the worst attempt at leaving a parking lot in the history of mankind.
List of the Day: Interview Pointers
Here are three easy ways to differentiate yourself from other candidates.
- Make comments suggesting you researched the company.
- Prepare specific reasons as to why you want to join the firm in question.
- Jot down a list of quantifiable career achievements.