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It's clear from the column that Gasparino's sources are envious of Dimon's current high standing and would like nothing more than to see him knocked down a peg. However, it's not clear what kind of fall Dimon will face should he post a hardly surprising fourth-quarter loss. Gasparino makes clear that Dimon is not heading the way of Lehman Brothers Inc.'s Dick Fuld or Bear Stearns Cos.' Jimmy Cayne. If Dimon does stumble, the cause would be the cards, as in credit cards, notes Gasparino. And J.P. Morgan's losses, he writes, will still be less than those posted by rivals Goldman, Sachs & Co. and Morgan Stanley. So what does it all mean? At worst (and it would have to be pretty bad), it could mean more government money will flow into J.P. Morgan (assuming the incoming Obama administration continues capital infusions via TARP). Less lethal, but still unpleasant, the bank's stock, which was down 40% in the fourth quarter, will take a further beating. In fact, Gasparino is actually arguing not for a collapse but for
Dimon to get knocked down a peg or two. Apparently, Dimon expects that
too. "People close to Dimon tell me he's well aware of the fact that
his image is about to take a major hit along with the financial
performance of the bank -- and he's preparing for the worst," writes
Gasparino. Gasparino admits that a number of Wall Streeters already revile the guy because they believe he took advantage of his weaker peers in the week's leading up to Lehman's collapse in September, though envy may play a key role here too. Gasparino writes:
So who is Dimon going to lose credibility with? Well, the media, which, through adulatory cover stories in magazines like Fortune, has made him just about the only star on Wall Street.
So this is Dimon's problem. His personal stock was driven up in part because his hard-driving management kept the bank clear of the shoals and in part because everyone else was dying. Some Wall Streeters don't like him, but the media loves him. (Gasparino also argues that his board was annoyed by his "straight-talking" December appearance on CNBC when he discussed the industry's problems.) And because of that, he can do no wrong, that is, until something even moderately bad befalls him. In this economy, that eventuality is all but guaranteed. - Matthew Wurtzel See story from The Daily Beast Matthew Wurtzel is the editor of Dealscape. CategoriesComments
From: Sunni Maria,
I don't have a feeling one way or the other about Dimon or Gasparino, but I have learned some interesting things about JPM's financials by reading the pdf research note on Reggie Middleton's BoomBustBlog.com. See the link: http://boombustblog.com/index.php?option=com_myblog&show=Amid-the-rally-I-look-at-the-Doo-Doo-32-and-their-receipt-of-the-TARP.html&Itemid=92
Posted on:
January 7, 2009 11:33 AM
From: Funny Man,
Funny how Charlie was backtracking on this today. He said he never said this. Charlie is a lughable reporter who breaks things that were already broken and throws a ton of spaghetti on the wal, and when 1 out 100 hit he claims to be the smartest man alive.
Posted on:
January 15, 2009 9:21 AM
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CNBC on-air editor Charlie Gasparino's 
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Jamie Dimon saw the fall coming and acted prudently. Consequently JP Morgan Chase was in a position to rescue two other financial firms whose leadership had not acted so prudently. Will JPM show a loss for the fourth quarter of 2008? Probably and it should be no surprise to anyone. Will Jamie Dimon take a fall for it? That seems unlikely and I don't personally feel that he would deserve to do so.