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…..
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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Update 2:Rep Jeb Hensarling on his deTARP legislation: Treasury says 10 banks can repay TARP money…
Update 2:
Right on baby, Free the Markets!!!
Interview with Rep. Jeb Hensarling (R) of Texas (Bloomberg News)
CNBC reports that TARP payback DOES get these firms out from under executive compensation guidelines (until the new pay czar sets up suggestions for non tarp firms that is) however, the WARRANTS are still outstanding AND the restrictions on hiring foreign workers still seem to be in force….IOW Congress still has their hands in the pie….
Update: the who’s who of paybacks:
JPMorgan $25b
Golden Slacks $10b
Morgan Stanley $10b (John Mack was all if Golden pays back I get to pay back too dammit, good for Mack)
US Bancorp $6.6b
AMEX $3.6B
Capital One $3.55 b (this one makes NO sense to me, they also were NOT told to raise capital in the stress tests, bizarre with credit card delinquency rates rising rapidly, betcha we see more about ole capital one soon)
BB & T $3.1b
Bank of NY $3.0 b
State Street $2.6 b
Northern Trust $1.57b
TOTAL 69.02b
Here is the shxtty part Timmeh has told Congress he and Team TOTUS believe they have LIMITLESS authority to REUSE ANY MONEY paid back into TARP INDEFINITELY for any purpose they damn well please..so NONE of this money will actually get back to taxpayers and reduce the ginormous deficit….
Rep. Jeb Hensarling (R-TX) is now proposing legislation to end the TARP program to try and stop them…right now they have an unlimites slush fund…
FREE THE MARKETS!
The part we need to watch is the warrants, can they buy them back..and is Treasury still planning to recycle the TARP funds endlessly as it sees fit….
Background from CNBC:
…The government is expected as soon as Tuesday to say which banks are on the list. The amount to be returned could be as much as $50 billion — twice the amount Treasury first estimated it would get back.
In addition to Morgan Stanley// and American Express banks expected to get the green light to pay back TARP money include Goldman Sachs Group JPMorgan Chase State Street and U.S. Bancorp
Meanwhile , Elizabeth Warren head of the TARP oversight panel says the banks need to be stress tested again right now, maybe she noticed that the stress test guidelines used a lower unemployment figure than we are currently experiencing….and since the banks refused to participate in PPIP, they are all still holding those toxic assets, the MBS on their books. Since FASB changed the mark to market rule they now have no impetus to sell those assets…we are right back where we were when Paulson initiated TARP….waiting for the housing fall to stop....
Breaking: TARP Repayment by Banks…Teh Roolz…
Steve Liesman breaking it on CNBC now..Charlie Gasparino has been calling TARP The Roach Motel..
FED: Supervisors now having discussions with several banks to repay TARP
Supervisors are requesting supplemental information for TARP repayment (WTH do they need after stress tests!)
No TARP repayment announcements expected until after June 8th
Supervisor will make recommendations on TARP repayment to the Treasury in batches (so no bank stands alone)
TARP repayment recommendations will be made to Treasury on monthly basis
Source: Treasury to announce process for auctioning TARP warrants in next several days
Treasury plans to spread out auction of warrants over several months
TEH ROOLZ TO REPAY TARP:
1. After repayment, still have to be able to pass stress test
2. Issue unguaranteed debt (no FDIC backup for you!)
3. Demonstrate ability to self-fund in the market (raising private capital)
4. Approval of supervisor
Dilution from repaying TARP: (Gov’t shares controlled by warrants as % of shares outstanding):
JPM 2.35%
Morgan Stanley 5.22% (OUCH!)
Golden Slacks 2.42%
Moderate in the Middle 