...James “Jamie” Dimon, JPMorgan Chase's CEO, is one of America's most powerful and outspoken bankers. Dimon's career in the brokerage business seemed preordained by his lineage. His grandfather, a Greek immigrant from Smyrna, was a broker and passed on his knowledge of the business to his son and partner, Theodore Dimon. Jamie Dimon's father and grandfather worked together for 19 years, and Dimon worked summers in their New York office. In 1978 Dimon graduated cum laude from Tufts University. He worked for the Management Analysis Center, a consulting firm in Boston, for several years and then enrolled in Harvard Business School. While a student at Harvard, Dimon interned at Goldman Sachs and was offered a job there after graduation in 1982. He declined, instead going to work for the mentor who would profoundly shape his career: Sandy Weill. From 1982 to 1985 Weill and Dimon teamed up at American Express, where Dimon signed on as vice president and assistant to the president. Dimon's abilities to crunch numbers meshed well with Weill's people skills. When Weill was forced out of American Express, he made Dimon his second in command at the little-known consumer-lending outfit that he bought called Commercial Credit Company. That tiny firm was the beginning of what would eventually become Citigroup. Dimon was a key member of the team that launched and defined Commercial Credit's strategy. He served as the company's chief financial officer and an executive vice president and then...
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...Jamie Dimon is the current CEO and chairman of JP Morgan Chase & Co, the second largest bank in the United States by assets. previously served as a Class A director of the Board of Directors of the New York Federal Reserve He is known for his detailed operational expertise and blunt mouth. While the recent financial collapse took down several investment banks, Jamie Dimon has managed to avoid the same fate for JP Morgan Chase & Co., speaking volumes of his leadership. 2007 Dimon was named to Time magazine's 2006, 2008, 2009, and 2011 lists of the world's 100 most influential people. He was also named to Institutional Investor's Best CEOs list in the All-America Executive Team Survey from 2008 through 2011. He was named the CEO of the Year in 2011.He received a $23 million pay package for fiscal year 2011, more than any other bank CEO in the United States 1. Have an attitude of openness to learning . Building your personal brand How you deal with failure will determine your success http://www.leadership-with-you.com/jamie-dimon-leadership.html Donald John Trump, Sr. (born June 14, 1946) is an American real-estate mogul, television personality and author. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's extravagant lifestyle, outspoken manner and role on the NBC reality show The Apprentice have made him a well-known celebrity who was No. 17 on the 2011 Forbes Celebrity 100 list. He is well-known as...
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...government and finance who saw the crisis up close. For those interested in what went down behind closed doors, Sorkin's “ Too Big To Fail” is essential. Thanks to his global access to the individuals involved, the interested reader can expand his or her knowledge about the events behind the events. Too Big To Fail begins in riveting fashion at J.P. Morgan CEO Jamie Dimon's Park Avenue apartment the day before the collapse of Lehman Brothers. Having spent part of the previous evening at the New York Fed, Dimon knew better than most what was ahead, and in a conference call with his top lieutenants, Dimon dismissed the view - one held by Lehman CEO Richard Fuld no less - that the prominent investment bank would be saved by Washington. Dimon's take was "That's wishful thinking. There is no way, in my opinion, that Washington is going to bail out an investment bank. Nor should they (my emphasis)." Instead, Dimon told the listeners on the call that "We need to prepare right now for Lehman Brothers filing. And for Merrill Lynch filing. And for AIG filing. And for Morgan Stanley filing." Before each company mention Dimon paused, then paused the longest ahead of his last warning, that his employees should prepare for the potential bankruptcy of Goldman Sachs. With the stage set, Sorkin then takes readers on a fascinating journey into a financial crisis that will not soon be forgotten. Indeed, by the end of the book the makeup of the symbol that is Wall Street had changed profoundly...
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...Those three men were let go soon after and could lose at least two years of income. The traders involved were also let go from the bank with no severance. The CEO Jamie Dimon commended the Ina Drew who was over the office and Dimon volunteered to give two years’ of pay. Drew retired after the trades were exposed. The Securities and Exchange Commission (SEC) enforces the Securities Act of 1933 and 1934. Act 34 consists of disclosure requirements for public companies. Act 34 requires companies to file quarterly and annual financial statements and other documents with the SEC. The documents are publicly available through the SEC database. The documents have to be accurate and represent the company’s financial position and operations. The four elements of a valid contract are capacity, offer and acceptance, consideration and compliance with the law and public policy. The duty of good faith and fair dealing in the banking relationship is a general belief to a contract that will treat each other honestly, fairly and in good faith. It is done either verbal or written. The breach of the contract will result in a lawsuit and the courts decide the disputes between parties to contracts. Intentional tort is a civil wrong doing on purpose. Negligent tort is failure to take care in fulfilling the duty owed. There is no comparison to the two. One is done on purpose and the other is done by not paying attention to what is going on. Interference with Contractual Relations...
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... Abstract The credit derivatives were introduced in the early 1990s, as large derivatives dealer searched for ways to transfer risk in financial markets. Although the financial innovations have only been used for decades, activity in credit derivations has grown rapidly. According to the Bank for International Settlement, the credit derivatives market reaches $21 trillion in 2014, and the main players for credit derivatives are investment banks, corporations or insurance companies. (Bank for International Settlement, 2014) Credit derivatives are relatively complex financial instrument, since it utilizes the leverage technique to mitigate the credit risk. One the one hand, credit derivatives allow banks to mitigate credit risk, reduce undesired risks and customize their risk profiles. On the other hand, the use of credit derivatives contains potential risks to the company since the market is still new. Users of credit derivatives must recognize and mange numerous associated risks. In fact, the historical evidence has shown that credit derivatives are the major causes to financial crisis. (Borodovsky & Lore, 2000) Although it is important to assess credit risk and market risk in the bank investment, operational risk is the fundamental part to the ultimate success of investment. “Operational risk is the risk of a breakdown in the operations of the derivatives program or risk management system.” (Chance & Brooks, 2012) Operational risk was generally defined as the failure in...
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...himself kept coming back to one lofty concept, directly referred to 50 times during the hearing: culture. There is a lot of it about. Culture was the “secret sauce” at Goldman Sachs, of which there is now “virtually no trace,” according to Greg Smith, a disgruntled former employee of the US investment bank. The “ingrained conventions of Japanese culture” were behind the crisis at the tsunami-hit Fukushima nuclear plant, says the man chairing the probe into the disaster. British pharmaceutical group GlaxoSmithKline has made “a culture of putting patients first” a priority, having clamped down on aggressive selling and marketing of blockbuster drugs that this month resulted in a $3bn settlement with the US government. Five years after the global financial and economic crisis began, political and regulatory reforms have either not yet taken effect or have failed to allay public fury and frustration about corporate excess. In the financial services sector, dissonance between banks’ traditional image as prudent and conservative, and successive revelations of misselling and misbehavior – particularly in investment banking operations, such as those at Barclays – has fuelled the anger. It has also shifted the political rhetoric from a focus on legal and regulatory solutions to a wider debate about the need to change a corporate culture focused on short-term profits and bonuses. As Texas Democratic Representative Rubén Hinojosa told Jamie Dimon, JPMorgan...
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...[Type the company name] | Ethical Breaches in the Bank | A Look in the London Whale Scandal | ACC557 Professor Brandy Havens | Kristi Spann | 1/23/2014 | | In recent times, there have been several ethical scandals that, in some cases, destroyed companies. The most infamous scandal was Enron. Enron was an energy company that was formed in 1985. It was the seventh largest energy company in America. According to Forbes.com, the charges related to knowingly manipulating accounting rules and masking the enormous losses and liabilities of the company. Ultimately charges were brought against the company’s high ranking executives including former CEO Jeff Skilling and his successor Kenneth Lay. They were charged with over twenty charges by the SEC (Securities Exchange Commission) and sentence to prison. Unfortunately, Kenneth Lay passed away before he was sentenced. Scandals like as Enron affected many people such as shareholders, employees, customers, and the economy. Shareholders lost their investments, employees lost their jobs, and customers lost their services. With all the losses, the economy was affected. Because of this scandal, Congress passed the Sarbanes-Oxley Act in 2002. Under this law, corporations would be held accountable for their actions. Organizations are required to be transparent. Under the Sarbanes-Oxley Act in section 302, one of the parts that are required by organizations is for the financial reports to reveal any and all internal...
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...E-mails Suggest Bear Stearns Cheated Clients Out of Billions By Teri Buhl Jan 25 2011, 1:01 AM ET Lawsuit alleges the bank took extreme measures to defraud investors, and now JPMorgan may be on the hook Former Bear Stearns mortgage executives who now run mortgage divisions of Goldman Sachs, Bank of America, and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities they created and sold while at Bear. According to e-mails and internal audits, JPMorgan had known about this fraud since the spring of 2008, but hid it from the public eye through legal maneuvering. Last week a lawsuit filed in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JPMorgan was unsealed. The lawsuit's supporting e-mails, going back as far as 2005, highlight Bear traders telling their superiors they were selling investors like Ambac a "sack of shit." They were selling investors like Ambac a "sack of shit." News of internal whistleblowers coming forward from Bear's mortgage servicing division, EMC, was first reported by The Atlantic in May of last year. Ex-EMC analysts admitted they were sometimes told to falsify loan-level performance data provided to the ratings agencies who blessed Bear's billion-dollar deals. But according to depositions and documents in the Ambac lawsuit, Bear's misdeeds went even deeper. They say senior traders under Tom Marano, who was a Senior Managing Director and Global Head of Mortgages for Bear and...
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...calamity: easy credit, lax lending standards, historically low interest rates, a belief in the permanence of ascending home values, and the cult-like following that Wall Street formed around a mathematical formula known as the Gaussian Copula function, which was used to assess risk on tranches within collaterized debt obligations. (The Wired magazine article is worth a read: http://www.wired.com/techbiz/it/magazine/17-03/wp_quant?currentPage=all ) The sheer existence of mortgage backed securities has been blamed for the crisis, the question of what to do with them remains. Are accusers looking to the suspects for answers? Liberal accounting standards were cited as one of the causes of the crisis; it seems that we’ve come full circle now that rigid Fair Value Accounting policy has been accused of exacerbating bank losses by “forcing companies to record financial losses that would eventually be at least partially reversed once market liquidity was restored.”* Prominent bankers have “criticized the use of fair-value accounting...
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...Does leadership exist in management? In order to find this out you need to look at management as a whole and leadership as a whole. Leadership is defined as, the position of function of a leader, a person who guides or directs a group. Another common meaning is the process that involves attempts to influence other people in obtaining organizational goals. Given these definitions, you can see that leadership can be anywhere. A person doesn’t need to hold a certain position in a company or organization to be considered a leader; it’s not a job title. There are several types of leadership, laissez-faire, autocratic (authoritarian), participative (democratic), transactional, and transformational. Laissez-faire leadership, when translated, means leave do or hands off. This form of leadership allows subordinates more freedoms to complete their tasks. The employees make decisions instead of the managers. Autocratic or authoritarian leadership is a type of leadership where a leader acts as the dictator. All decision will come from the leader with little to no input from subordinates. Autocratic leadership is highly effective. These leaders are highly motivated, knowledgeable, and feel fulfilled when they achieve something on their own. Participative or democratic leadership involves cooperation by all members of a group or team to get things done. This type of leadership allows leaders to work closer and together with their subordinates. Advantages of participative leadership are...
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...communication channels. The majority of reports received by Business Ethics and Compliance involve employee relations issues. This trend is consistent with other companies – retail or otherwise – that provide alternative reporting mechanisms as part of a comprehensive ethics and compliance programme •By using the Visa Account of their Duetto Card anywhere Visa credit cards are accepted, cardmembers will earn one percent back in Duetto™ Dollars that will be automatically loaded on their Starbucks Card Account after each billing cycle. Duetto Dollars can then be used to purchase anything cardmembers want at Starbucks including beverages, food and store merchandise. Cardmembers will receive a one-time pre-load of $10 to their Starbucks Card Account after their first Duetto Card Visa purchase. By using the Starbucks Card Account of the Duetto Card, cardmembers can also qualify for additional quarterly gifts and benefits. "Today, more and more consumers enjoy being rewarded for loyalty to their favorite companies," said Jamie Dimon, chairman and chief executive officer of Bank One. "The Duetto Card is a perfect example of three...
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...Breaking Up Big Banks Hard to Do as Market Forces Fail By Christine Harper - Jun 26, 2012 11:00 PM CT Seventeen years ago fund manager Michael F. Price spurred the merger of Chase Manhattan Corp. and Chemical Banking Corp., creating what was then the biggest U.S. bank and laying the foundation for JPMorgan (JPM) Chase & Co. Now he has a new message: It’s time to break up. Enlarge image Breaking Up Bank Conglomerates Hard to Do as Market Forces Fail Andrew Harrer/Bloomberg News Customers use ATMs at the Citigroup Inc. headquarters in New York. Customers use ATMs at the Citigroup Inc. headquarters in New York. Photographer: Andrew Harrer/Bloomberg News The stocks of five of the six biggest U.S. banks -- JPMorgan, Bank of America Corp. (BAC), Citigroup Inc. (C), Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) -- are languishing at or below tangible book value. That means the pieces are worth more than the whole, Price said. “Within the banks are wonderful assets,” said Price, who sold his fund-management company for $610 million in 1996 and now runs MFP Investors LLC in New York. “How long are the boards of directors going to stand by and take no action and let them be pounded? So far there’s no indication that any of these banks or boards of banks is willing to do anything about it.” Politicians and regulators have resisted calls from some investors to split up conglomerates that were assembled over two decades by executives such as former...
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...wrote a book titled Too Big To Fail. This book focus on the collapse of the investment bank Lehman Brothers, Merrill Lynch was sold by Bank of American, Freddie Mac and Fannie Mae was nationalized, and the government took 80 percent of AIG that took place on the weekend of September, 15, 2012. Significantly, he examined the financial markets reactions to the bankruptcy of Lehman Brothers. It starts with the failure of Bear Stern, one of the biggest banks in American. Bear Stern found the bank having too many toxic assets and could not cover its liabilities. The United States implement their own economy in the history of the largest and deepest government intervention. In May of 2008, the Federal Reserve did sale support to the fail Bear Stern to JP Morgan. Something similar happened to Lehman Brothers in September 2008, Lehman was one of the American five original investment banks. The author discusses that because of bad investment in the subprime mortgage market, insolvency, and shattered investor confidence led to the inevitable downfall of Lehman. At the beginning, Lehman was looking for 30 to 50 billion dollars in financial support by Warren Buffett. Moreover, Lehman tried to seek the financial assistance of the Korea Development Bank. The bank also wanted the government to provide financial assistance. But the results have failed. On September 12, 2008, many different banks including bank of America, JP Morgan, Goldman Sachs, Merrill Lynch, and Barclays met at the Federal...
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...poorly executed. Jamie Dimon, CEO of JPMorgan Chase, picks mediocre strategy well executed. He says that having a well execution is more important than having a great strategy. A great strategy is waste if it’s not executed well whereas a mediocre strategy will still be able to make positive impact if it’s well-executed. People fail to understand why their strategy is failing. This allows them to blame their employees and clients for the mistakes. A brilliant strategy producing poor results cannot be a brilliant strategy. A strategy’s purpose is to make positive change. If a strategy fails to produce necessary outcome, it is simply a failure. The article discusses the metaphor in which senior management is the choosing brain and rest of the employees are choiceless doers. In our body, brain’s job is to choose the job and hand’s job is to follow the instructions. Similarly, strategy is to choose what can be done. Execution is to follow the direction to implement the strategy. In short, strategy is choosing and execution is doing according to the false metaphor. This approach doesn’t help an organization, indeed it does more damage to the business as it restricts the employees from using their insight and experience. The article uses another example of large retail bank to the strategy and execution terms. The CEO and his team working in the retail bank formulate a strategy to satisfy customer needs. This strategy is forwarded to all the branches of the bank. The customer...
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...merged to form the company. The well- known heritage banks include JPMorgan and Co., The Chase Manhattan Bank, Bank One, Manufactures Hanover Trust Co., Chemical Bank, and The First National Bank of Detroit (JPMorgan.com). JPMorgan predecessors were the introducers of the first automated teller machine (ATM). The ATM revolutionized banking by allowing customers to conduct transactions from almost any ATM in the world. The Chemical Bank was the first bank in the country to allow customers to withdraw cash 24 hours a day. The Chase Manhattan Bank introduced the Chase Money Card, the first Visa debit card offered by a bank in New York. The predecessors were also the first to develop one of the earliest online home banking services. Today, JPMorgan Chase is one of the largest bank holding companies in the United States. JPMorgan is a leader in asset management, investment banking, private banking, treasury and securities services, and commercial banking. The company services large franchises, corporations, institutional investors, hedge funds, governments, health care organizations, educational institutions, and individuals. JPMorgan has over two trillion dollars in assets and has over five thousand branches in several states. JPMorgan Chase is also one of the top lenders and credit card issuers. The company operates globally in over one hundred different countries (JPMorgan.com). The company has subsidiaries JPMorgan Private Bank and investment manager JPMorgan Asset Management...
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