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Bear Stearns Another Chance for Dimon to Shine
by
findingDulcinea Staff
Analysts agree that J.P. Morgan Chairman and CEO Jamie Dimon is at the top of his game, keeping his company afloat while other institutions flounder.
30-Second Summary
The Bear Stearns takeover puts J.P. Morgan Chase & Co.’s highly respected chairman and CEO Jamie Dimon in the spotlight once again.
In a time of irrefutable economic peril, Dimon is “quickly becoming Wall Street’s banker of last resort,” according to The Wall Street Journal.
“Mr. Dimon has emerged as one of Wall Street's most powerful players at a time when many firms are scrambling for leadership,” the Journal writes.
Dimon has been with J.P. Morgan since 2004, following its merger with Bank One Corporation, where he had been chairman and CEO since 2000.
Before that, however, came Dimon’s infamous ouster from Citigroup Inc. following a power struggle with that institution’s then chairman and Dimon mentor Sandy Weill.
Despite rumors that he would never recover from that downfall, 10 years later Dimon is not only thriving, he has ensured J.P. Morgan’s success in the most hazardous economic situation the United States has seen in decades.
That is exactly why Fortune magazine named him number 15 in the “25 Most Powerful People in Business.”
“While Citigroup, Wachovia, and Bank of America struggle with multibillion-dollar losses, one big bank is emerging relatively unscathed from the market meltdown: J.P. Morgan Chase. That is a tribute to Jamie Dimon, its CEO since early 2006,” Fortune wrote.
In a time of irrefutable economic peril, Dimon is “quickly becoming Wall Street’s banker of last resort,” according to The Wall Street Journal.
“Mr. Dimon has emerged as one of Wall Street's most powerful players at a time when many firms are scrambling for leadership,” the Journal writes.
Dimon has been with J.P. Morgan since 2004, following its merger with Bank One Corporation, where he had been chairman and CEO since 2000.
Before that, however, came Dimon’s infamous ouster from Citigroup Inc. following a power struggle with that institution’s then chairman and Dimon mentor Sandy Weill.
Despite rumors that he would never recover from that downfall, 10 years later Dimon is not only thriving, he has ensured J.P. Morgan’s success in the most hazardous economic situation the United States has seen in decades.
That is exactly why Fortune magazine named him number 15 in the “25 Most Powerful People in Business.”
“While Citigroup, Wachovia, and Bank of America struggle with multibillion-dollar losses, one big bank is emerging relatively unscathed from the market meltdown: J.P. Morgan Chase. That is a tribute to Jamie Dimon, its CEO since early 2006,” Fortune wrote.
Headline Links: Dimon steers J.P. Morgan through crisis
“A decade after Mr. Dimon's career seemed shattered by his notorious ouster from Citigroup Inc., he is playing a critical role in the global credit crunch at a time when rival firms are on their knees,” writes The Wall Street Journal. The Bear Stearns takeover is the latest example in a long line of power plays that have propelled this banker to the top, despite a sub-prime mortgage crisis that has left very few banking institutions unscathed.
Source: The Wall Street Journal (registration may be required)
“I think we’re fine,” Dimon said at a conference in November 2007, commenting on the impending market meltdown. He was right, and that is part of the reason Fortune magazine named him one of the 25 most powerful people in business. Over the past three months, J.P. Morgan’s stock has fallen, but it has still done far better than all its major rivals. The profile also suggests that with Citigroup now in “a swoon,” Dimon is getting “a sweet taste of revenge” following his firing by Sandy Weill in 1998.
Source: Fortune
Jamie Dimon "has suddenly become the most talked about - and arguably the most powerful - banker in the world today," writes the New York Times. The story suggests that Dimon's talents lie in remaining confident and cool-headed on "another white-knuckled day in the markets," with the Bear Stearns deal. “You are on an emotional roller coaster on any deal, but much more so on this one,” Dimon said. “For all the drama today, it could have been much worse.”
Source: The New York Times
Background: J.P. Morgan agrees to buy Bear Stearns
J.P. Morgan Chase & Co. agreed to buy Bear Stearns for $240 million last week, ending 85 years of independence for the securities firm. Dimon acquired Bear Stearns for less than its value after clients, alarmed by rumors of a cash shortage, withdrew $17 billion in two days.
Source: Bloomberg.com
Dimon, having taken the helm at J.P. Morgan, quickly became known as “a guy who pays attention to details,” USA Today wrote in 2005. "Sometimes, all that matters are the details," Dimon said. "Sometimes, details will sink you. CEOs should drill down."
Source: USA Today
Related Topic: Dimon vs. Weill
In a January 2004 story, Business Week profiles the power struggle between Dimon and Weill that culminated in Dimon’s ouster from Citigroup Inc. in 1998. Their falling out was especially surprising considering how close the two had been since Weill, then at American Express, hired Dimon in 1983. At the time, Dimon was 26 years old and just out of Harvard Business School. “The Weill-Dimon team was legendary for how intensely they worked together and how many megadeals they struck,” according to the story.
Source: Business Week
Dimon talks about the recession
Dimon told a group of economists Wednesday that the United States is likely already in a recession. “Financial conditions are getting more extreme,” he said. But Dimon also predicted that many of the problems in the financial market, particularly the de-leveraging of problem loans, are already completed. "The financial side will work through a lot of this ... by the end of this year," Dimon said.
Source: Reuters
Biography: Jamie Dimon
Jamie Dimon’s employee biography on the J.P. Morgan Web site highlights his past work experience at Bank One and Citigroup, as well as his education at Tufts University for his undergraduate degree, and Harvard Business School for an MBA.
Source: J.P. Morgan Web site
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