Jamie Dimon fights back against UK Banker Bonus Tax
Jamie was one of our picks for Treasury Secretary to replace the tax challenged Timmeh (see our March post). Plus since we are shoveling money into, and making all our policy based on, protecting the banks, why not have someone with actual private sector banking experience?! Plus Jamie is actually, you know, SUCCESSFUL!
Jamie talks reality to Alistair Darling. JPMChase is about to enter a ginormous HQ on Canary Wharf in London. Maybe the ingenius Banker Bonus Tax that Gordon Brown and Alistair Darling have floated is NOT the best way to keep London as the European center of trading….
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Jamie’s Cryin’: Dimon says he’s tired of complaints about banker pay and bonuses
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Another day, another classic VH tune fits the lede, Jamie Dimon is pushing back against the ‘rising populist tide’ in re banker bonuses and pay. If you have been here before, you know we are big fans of Jamie and wanted him for Treasury Secretary. We like that he is a fighter.
But we also know the banking industry and Wall St selected obama as their candidate for a reason, and since it is Obama ginning up the faux populism and then slamming we Tea Party Patriots for being concerned about Government spending, well, Jamie needs to talk to the WH, not the people, WE are not the problem…..
…Jamie Dimon defended the bank’s pay policies on Monday and said he was “tired” of his employees being vilified over bonuses.
Rising bonuses have drawn criticism from politicians and others, who complain Wall Street’s losses seem to be socialized while its profits are privatized.
Dimon, along with the chief executives of Goldman Sachs Group Inc (GS.N), Morgan Stanley (MS.N) and other big banks, will be appearing this week before a commission created by Congress to look into causes of the financial meltdown.
JP Morgan pays its employees for sustained performance over multiple years, Dimon said on Monday.
“We do not have change-of-control agreements, special executive retirement plans, golden parachutes, special severance packages or merger bonuses,” he told a JP Morgan healthcare conference, adding that many of company’s employees are in client-facing jobs and work hard with small and mid-size businesses.
“I am a little tired of the constant vilification of these people,” he said….
PS Jamie says Commercial R.E. is a ‘train wreck’ but we knew that was coming…..
Market Mover Monday: FED expanding TALF, no WH FY10 budget forecast yet? GE Capital RE to sell MBS to China…
Market Update: 11:00am EST: DOW down 190.90 to 9130.50; S&P down 23 to 981 and NAS down 48 to 1936 (ouch we were just over 2000 last week)….
CNBC: Federal Reserve is announcing now they will expand TALF to March 2010 from December 2009, commercial securities program through June 2010..
Not a soul reported the WH FY 2010 budget update the WH said they would release Friday at 5:00pm…is it so bad they didn’t release it?If we go to the WH site we will get cookied! Oh Noes! will any journOlist person NOTICE they have not reported the figures to us yet?!
GE Capital RE is about to sell China a bunch of our mortgages with Uncle Sam money isn’t that great? frakkers.
China Investment Corp, the country’s $200 billion sovereign wealth fund, is set to pour up to $2 billion soon into the U.S. mortgage system by hiring mandates under the U.S. Treasury-backed Public-Private Investment Plan (PPIP)..
…Under the PPIP program launched earlier this year the U.S. government plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy as much as $40 billion in toxic securities from banks…
...CIC, established by the Communist government in late 2007, is keen to participate in the PPIP as it expects the U.S. property market to start to recover gradually late this year, said the sources.
This is the same PPIP that had an EPIC FAIL when NO BIG BANK would participate, Jamie Dimon of JPMChase was all, we are eager to get the hexx away from the government, in his own words of course, lol…so the toxic assets still sit on big bank books while Jeff Immelt, (worst CEO in the worrrrld!?!) prepares to sell our loans directly to China..this should go over well with evicted homeowners 😦 maroons.
Midnight Oil courtesy of onlythepianoplayer
Update: CIT Group files bankruptcy; No Government aid for CIT….Thursday Market Mover: Paulson on the Hill…
Update: 11/2/09: Bad, sad news, CIT Group went belly-up this weekend despite the 2B taxpayer infusion and the Carl Icahn offer. Bad news for small business. But it is an attempt to dump the debt and live on, so maybe it will live to fight another day.
CIT Group Inc. filed for bankruptcy protection Sunday, in a final attempt to restructure and keep the doors open at the century-old commercial lender.
Now, the lender to nearly a million small and midsize businesses must maintain its customer base as it tries to rehabilitate under Chapter 11 protection. Most financial firms sell off assets or liquidate in bankruptcy amid fears that customers will draw down credit lines and spark a run on the bank.
But CIT garnered support from about 90% of voting debt holders for a prepackaged reorganization plan that could allow the lender to speed through Chapter 11 and emerge with a new business model by year’s end. Under the plan, bondholders will exchange their debt for new debt that matures later, as well as nearly all the equity in a reorganized CIT.
The bankruptcy stay would eliminate some $10 billion in debt from the lender’s balance sheet, the company said. CIT has been weighed down by more than $30 billion in bond debt.
A $2.3 billion taxpayer bailout extended to CIT late last year under the Bush administration will be wiped out in the bankruptcy. Common shareholders will be wiped out, too.
The plan is among the first attempts to restructure a financial firm in bankruptcy court and have it emerge relatively intact. The board approved CIT’s decision to seek Chapter 11 protection in a meeting Sunday. “The board appreciated that this is a [historic] sort of filing,” said a person close to the lender. “It is clearly unprecedented.”…
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Charlie Gasparino is reporting on CNBC’s Kudlow that Sheila (Bair of FDIC) brought the hammer down and drew the line in the sand saying NO MORE BAILOUTS…shxt it would have to be on small business that the money train dried up eh?
Well, we love Sheila here at MiM (we wanted her or Jamie Dimon of JPMC for Treasury)and Timmeh was saying from Saudia Arabia that he was confident they would find a way to do the bailout, so we enjoy it when his toes are stepped on, bitter and petty that’s us today fer shure, BWAAAAHAAAA.
Hope Sheila’s foot met Timmeh’s axx on this one, FDIC should have the too big to fail wipeout authority IMO not the Fed and for Gawds sake not the Treasury….
CNBC on imminent CIT bankruptcy following FDIC and Treasury decision not to bailout…
… CIT Group, a major lender to small- and mid-sized U.S. businesses, said on Wednesday that talks with the government to bail out the company had ended, a development that could make bankruptcy likely.
…”Discussions with government agencies have ceased,” the New York-based company said in a statement. “There is no appreciable likelihood of additional government support being provided over the near term.”
The announcement came after last-ditch talks in which Treasury Department had been concerned about a worsening liquidity crunch at CIT over the last few days, and that government aid would not put the lender on a path to recovery….
Tomorrow BIG NEWS will be HANK PAULSON testifying on Capitol Hill about the Merrill BofA shenanigans, should be lots of fun. Hanks is the man who handed free market capitalism over to the government and then retired with hundreds of thousands of Golden Slacks shares…..Hank Hank Hank, when he sees whatis happening now how does he feel? He opened this door and TOTUS swagga’d through it….
Our MANY posts on Hank, Timmeh, AIG, Merrill, BofA, CITIBANK, Sheila, are too numerous to link…
Smashing Pumpins fan made video with footage of Tours in France, courtesy of buissonland
Update: FASB modifies Mark to Market…
UPDATE: 9:33AM est: On the wires now here
The changes will allow the assets to be valued at what they would go for in an “orderly” sale, as opposed to a forced or distressed sale. The new guidelines will apply to the second quarter that began this month.
In a twist, though, the expanded leeway for financial institutions could undercut the government’s new financial rescue program in which it is joining with private investors to buy up about $500 billion in toxic assets from banks, some experts say.
The mark-to-market rules have forced banks to take steep write-downs on some assets, especially securities tied to high-risk subprime mortgages.
An estimated $2 trillion in soured assets is gumming up banks’ books. As the financial crisis has ground on, more banks have foundered and failed. That’s prompted the industry and lawmakers of both parties to push for the accounting relief and flexibility.
But some fear that companies will use the leeway to boost the value of the assets on their books to “unrealistic levels,” Robert Willens, an expert on tax and accounting issues for Wall Street clients, told The Associated Press last week.
We’re back!! Check out FASB news on the first vote on changes..
Breaking on CNBC right now,
FASB removes presumption that assets in inactive market are automatically distressed’
FASB: New mark to market guidance should be prospective not retroactive: new guidance effective for 2009 Second Quarter; Q1 application permitted
(this will help financials use cash flow instead of last price to mark assets in frozen markets, more votes from FASB coming forthwith!)
PS Were I Jamie Dimon, I would remark with these rules and I would NOT sell into the Geithner PPIP plan, I would wait for my assets to come back, which is what the banks have been doing already, sort of counter productive in some ways we shall see..
Financials SOARING on the news, brushing off a bad weekly jobless claims number..
DJ futures up 118 and financials across the board higher…
Update: CME ups margins, precious metals pull in; Gooooold! Shiny precious hits *another* high, up $16 to $1419.60
J-J-J-Jamie and the Feds tryin to knock we retail investors outta da precious metals? ~Don’t push me cuz I’m close to da edge~ We swung $35 trading range in Gold today, TBTF are playing Calvinball again, when they lose they change da roolz~
Update: Around 2:00pm ET Preccious and sister Silver began to sell off. The culprit? The CME raised margins. Some call it a pullback (‘Fed tryin’ t’knock you out’) , I call it time to buy :0> Even SLW Silver Wheaton ‘looking good‘ and I am trying not to play in Ben’s crapped in sandbox…
ZeroHedge is all over the margin increase and JPMChase’s fingerprints~
…And if that doesn’t work, there is always confiscation.
“CME confirmed silver margins raised from $5000 to $6500 (30%) effective 11/10 settl – no other metals effected”…
Keep printing Ben. Devaluing our US Dollar. Target equities, whatevs. You cannot force us back into a fixed market. Gold!
Moderate in the Middle 