Wednesday, January 07, 2009

Is Jamie Dimon the Next to Fall?

The Daily Beast reports:
Jamie Dimon is in the hot seat. You wouldn’t know from the endless glowing press accounts he’s received for steering JPMorgan Chase fairly clear of the subprime debt crisis that has already taken out two firms—Bear Stearns and Lehman Brothers—and forced the federal government to bail out the once mighty Citigroup with billions in aid and other measures.

But Dimon is feeling that heat, nonetheless, from analysts, who believe his firm will post a loss this quarter, the first since he became CEO in 2006; from fellow CEOs, who believe he took advantage of competitors during the height of the financial crisis in mid-September; and now even from some of his own board members, who believe their straight-talking CEO spoke a little too straight in a recent CNBC interview when he described in graphic terms the problems facing JPMorgan and the rest of the financial business. Following Dimon’s remarks, which he then repeated in a speech, the Dow Jones Industrial Average fell nearly 200 points, and shares of JPMorgan were among the biggest losers, tanking nearly 10 percent.