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Jaime Dimon Interview that Buffett calls great!


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Ok ok, hold on everyone.  Nothing but plaudits for Jamie D so far.  Does no one else smell the BS??  Don't get me wrong, he's clearly very smart and able.  He is such a smooth and convincing speaker, certainly draws you into his loving arms.


But the I'm-trying-to-do-my-bit-for-mankind-as-CEO-of-a-bank stuff???  ??? ::)

That is really stretching it.


Bankers are reviled these days.  He's on the charm offensive, on behalf of JPM and the industry.  That was a beautiful story about all the good folks at JPM doing the Lord's work for the good folks in Detroit.  Actually despite my tone, I do think that is very beneficial work.  But are they doing this because they really love the good folks in Detroit, or because they want the hate mail to stop (and to get Elizabeth Warren off their case)?


I guess we'll never know, but Jamie's a born politician (arguably his main job as a lobbyist in Washington).  And he would probably make a good real politician.....except he'll never be one because his name is tarnished: he's a banker. 


Banks survive / thrive on confidence and the goodwill of central bankers / regulators / politicians.  Jamie said JPM didn't need to take TARP money; perhaps so. But he needed the banking system to take TARP or there was a risk that the fear contagion would directly or indirectly spread to them in  time.  And it didn't seem possible that others could take it without JPM taking it.  Ergo JPM had to take it, no?


He made an interesting point about Bear Stearns though - who in their right mind would take on a struggling bank in the future as they're possibly on the hook for fines down the road?  I dunno, maybe the bank that's told by the Fed "You're doing it!".  He said the problem is that you're not doing a deal with another person.....rather you're doing a deal with a body where people come and go and the rules change.  That sounds like he's taking down his whole business model, deals or no deals!


Banks are such complex beasts -- operationally, politically etc.  Life's too short.....



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