Wednesday, April 9, 2008


it makes such a difference when the boss has real skin in the game. when dimon took his position at the helm of jpm he wrote a $50 million plus check at the time to buy shares. clearly in the months that have followed, the bank has taken a prudent posture. this is what one would expect when the CEO has his own money at risk. now the bank is reaping the rewards. not only are they able to acquire bsc at a bargain price, but they are also able to hold onto their performing LBO Loans and not have to sell them at a discount.

of course the one thing that the bank needs to maintain is a sense of caution going forward. one of the worst things that can happen in the financial business is overconfidence. chase the bank still has a long way to go in terms of customer service, and JP Morgan is in a very competitive corporate market. so everyone still has to keep putting one foot forward after the next. hopefully, dimon has the force of personality to instill that in his troops going forward.

Position: Long jpm

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