Bailed-Out Chase CEO: People Should Pay Mortgages "Even If They're Underwater"

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Chase CEO Jamie Dimon, whose bank received $25 billion in bailout funds from the government, refused to tell CNBC anchor Melissa Francis how the bank is performing this quarter.
"Can you tell me how this quarter is doing for JPMorgan?" Francis asked.
Dimon's brief response: "I can't."
Last October, Dimon was a little more explicit on an earnings conference call:
"I would be shocked if we make lots of money one of these quarters, anyway." Dimon says they're watching investment-banking clients carefully.​
Asked for his thoughts about Obama's housing plan, Dimon praised the plan, saying that it was "really elegantly done and really well-designed," adding that JPMorganChase alone will modify over 600,000 loans.
But he took a tough attitude towards home owners behind on their payments:
"I don't think just because someone's underwater they say I don't have to stay there. But they're supposed to pay the mortgage, and we should teach the American people, you're supposed to meet your obligations, not run from them. Because you have a mortgage doesn't mean you should run away as it goes down."



yea it would really be nice if the government just gave homeowners a chunk of money to pay off their debt like certain Banks. Love the irony of it all.
 
Wow. These banks really do not get it. And they really do consider government bailouts as "expected". I'm convinced they mold their business plans around bailout expectations.
 
Can you at least give the Huffington Post credit for this story?
http://www.huffingtonpost.com/2009/02/19/bailed-out-chase-ceo-dimo_n_168121.html

That being said, Dimon is no idiot. JP Morgan has almost completely side stepped this entire credit crunch. JPM has made some brilliant moves in this entire situation, and he's largely responsible for many of these moves.

These articles fail to mention how many of thse banks were forced to take Tarp money. JP Morgan and Morgan Stanley have mentioned that they are ready to pay this money back immediately just to avoid the stipulations on Tarp.

If they're ready to pay back this money, then what's the issue here? They can easily meet their obligations and more than likely will in this case. What's wrong with him stating the obvious?
 
[quote name='thrustbucket']Wow. These banks really do not get it. And they really do consider government bailouts as "expected". I'm convinced they mold their business plans around bailout expectations.[/QUOTE]

Yes they do. They expect you to serve them as expected. The people behind these banks are the same behind the FED so why does this surprise you? Serve them and shut up. The Elite's should not deign themselves to do anything that is beneath them, including actually doing anything of service from birth. See real labor. That is your job, the peon, to serve under them and worship them for doing nothing except subsisting off the sweat off their daddies or granddaddies brow. Hustle and bust my ass.
Note the sarcasm obviously in some areas.
 
Chase didn't need the money. They just took it because it was there and are now trying to figure out how to give it back.

And I agree with the CEO, people should pay their debts.
 
[quote name='Capitalizt']Chase didn't need the money. They just took it because it was there and are now trying to figure out how to give it back.

And I agree with the CEO, people should pay their debts.[/QUOTE]

Yes they should. But it's hard to take it from an entity that can't/won't/doesn't.

It's like someone totalling their ferrari by driving like a maniac, getting a new one for free, and then lecturing everyone else on the road about driving safe.
 
[quote name='Capitalizt']Chase didn't need the money. They just took it because it was there and are now trying to figure out how to give it back.[/quote]

...kind of like the bad mortage risks that took the loan they shouldn't have?

To imply that this executive has any leg to stand when he criticizes Americans for the same mistakes he made, or refuses to devulge what he has done with my tax dollars, is absurd.

Might as well have Madoff lecture us about the evils of fraud.
 
[quote name='camoor']...kind of like the bad mortage risks that took the loan they shouldn't have?

To imply that this executive has any leg to stand when he criticizes Americans for the same mistakes he made, or refuses to devulge what he has done with my tax dollars, is absurd.

Might as well have Madoff lecture us about the evils of fraud.[/quote]

No?

Several banks were forced by the government to take the money. JP Morgan Chase was one of them.

He himself has not made the "same mistakes" that other Americans have. Do your homework. He is responsible for allowing JPM to side step nearly the entire financial meltdown. He's made some incredible moves on assets. He's invested 12.6 million of his own money into the company since the Tarp funds were handed out. Is he shady? Sure. But he certainly has much more of a "leg to stand on" than someone like Ken Lewis or John Thain.
 
If his company had a contractual right to get out of a bad business deal, it would be unethical not to take it.

If you're under water, go to your lender and see if they'll cut you a deal. If they're smart they will, and many do. If not, let them have the house. Business is business, except when its costing his company money it seems.
 
[quote name='mtxbass1']No?

Several banks were forced by the government to take the money. JP Morgan Chase was one of them.

He himself has not made the "same mistakes" that other Americans have. Do your homework. He is responsible for allowing JPM to side step nearly the entire financial meltdown. He's made some incredible moves on assets. He's invested 12.6 million of his own money into the company since the Tarp funds were handed out. Is he shady? Sure. But he certainly has much more of a "leg to stand on" than someone like Ken Lewis or John Thain.[/quote]

You're right. I feel really bad for these multibillionaire "victims" who were "forced by the government" (with a gun to their head, I'm sure) to take the money. God I always hate it when the govt barges into my house and forces me to take money - what's a poor guy to do!

Yes, he has more of a leg to stand on then the worst of the worst. I'd also rather get lessons on foreign policy from Dubya over Sadaam's ghost. Doesn't mean any of them are trustworthy.

As for his performance, wow did he ever sidestep the crisis. More then half of JPM stock value wiped out, way to go guy!

http://finance.yahoo.com/echarts?s=JPM#symbol=JPM;range=1y
 
[quote name='camoor']You're right. I feel really bad for these multibillionaire "victims" who were "forced by the government" (with a gun to their head, I'm sure) to take the money. God I always hate it when the govt barges into my house and forces me to take money - what's a poor guy to do!

Yes, he has more of a leg to stand on then the worst of the worst. I'd also rather get lessons on foreign policy from Dubya over Sadaam's ghost. Doesn't mean any of them are trustworthy.

As for his performance, wow did he ever sidestep the crisis. More then half of JPM stock value wiped out, way to go guy!

http://finance.yahoo.com/echarts?s=JPM#symbol=JPM;range=1y[/quote]

:roll: No one said the guy was trustworthy. What I'm saying is that he's one of the smarter CEOs out there that has made very smart moves during this crisis.

Stock prices don't mean jack shit in regards to his performance or many other CEO's performance when the entire financial market has taken a 50% haircut or more. You want to talk about his performance? How about this? Run a little comparison on JPM's stock price verses Bank of America and Citigroup. Here, I'll do it for you. Hell, I'll even throw Apple in the mix, who has nothing to do with any of this, but shows you that you can't base stock price on CEO's performance.

From today, going 1 year back:
JPM's stock price has decreased 52.36%
Bank of America has decreased 90.79%
Citi has decreased 92.18%
The DJIA has decreased 39.53%
AAPL has decreased 27.26%

Now, are you going to try to tie Steve Job's performance to the stock price, just like you do with Dimon? AAPL is down nearly 30% for the 1-yr span. Does that mean he's doing a bad job? Hardly.

Dimon is one of the few bank CEO's out there that "gets it", despite what you want to believe. He's positioned JPM to be one of the few banks that stand to profit immensely when all of this is said and done. Good for him.
 
[quote name='mtxbass1']Dimon is one of the few bank CEO's out there that "gets it", despite what you want to believe. He's positioned JPM to be one of the few banks that stand to profit immensely when all of this is said and done. Good for him.[/quote]

So the 10,000 dollar question is - do you believe this enough to invest money in JPM? Or are you just getting backed into a corner and trying to throw out a half-baked opinion as fact.

I hope the banking sector does recover and starts earning a profit. It's a truism that some day it will - the question is when. I'm not naive enough to think it's going to happen anytime soon, and I'm not foolish enough to wish caviar dreams and champaign wishes on any one of the highly-paid idiots who got us into this mess.

If he made such quality loans, why does he need to bother talking about upsidedown-loans made to people who can't pay them back and no longer care about their credit rating - obviously his company will have so few loans in this category that it shouldn't matter.

Dimon is a loudmouth arrogant jerk - I hope he does pay the govt money back immediately so we don't have to hear from him anymore. However I'm not holding my breath...
 
[quote name='camoor']So the 10,000 dollar question is - do you believe this enough to invest money in JPM? Or are you just getting backed into a corner and trying to throw out a half-baked opinion as fact.
[/quote]

How exactly am I getting backed into any sort of corner at all? You make no sense. Why are you avoiding what I'm saying about how stock price and CEO performance? Please tell me how my opinion is "half baked". I'm interested to know exactly what you think is half baked about stating the facts here. If anyone is being backed into a corner here, it's you for not knowing anything about what you're talking about here.

And for the record, no, financials are a bit too risky for my liking. I stick to tech stocks and commodities mostly. I have no interest in investing in JPM, but if I did, I'd look at them or GS. I firmly believe they'll be one of the few banks left when all of this is done with.

[quote name='camoor']
If he made such quality loans, why does he need to bother talking about upsidedown-loans made to people who can't pay them back and no longer care about their credit rating - obviously his company will have so few loans in this category that it shouldn't matter.
[/quote]

Every bank made these types of loans. JPM just made fewer of them and their exposure was less. You act like he personally approved these loans himself, which is idiotic to say the least. He's helped to shape policies to avoid a lot of this mess and will profit from it immensely. Again, good for him and JPM shareholders.

[quote name='camoor']
Dimon is a loudmouth arrogant jerk - I hope he does pay the govt money back immediately so we don't have to hear from him anymore. However I'm not holding my breath...[/quote]

What would him paying the money back immediately have anything to do with us not having to hear from him anymore? He's one of the industry leaders and one of the few CEO's out there who has made many of the right moves here. Who else would you prefer we hear from? Someone like John Thain, Ken Lewis, or even Angelo Mozilo?

Where's your outrage over John Thain spending 1.22 million dollars of YOUR money to redo his office? Where is your outrage for him moving up the bonus schedule so that YOUR MONEY was used to pay out millions of dollars in bonuses for people who brought their company to failure?

You're outraged at the wrong CEO here.
 
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