Dimon: Hit me with a fine; We can afford it

by MPA01 Apr 2015
In her new political memoir, A Fighting Chance, U.S. Senator Elizabeth Warren recounts a visit to her office by JPMorgan Chase CEO Jamie Dimon that deteriorated almost immediately after it started. Warren writes that the two argued about financial regulation, Dodd-Frank and the new Consumer Finance Protection Bureau she had helped create.

She writes:
 
Rich Cordray was still serving as director of the consumer agency under a recess appointment; he hadn’t yet been confirmed by the Senate, which meant that the agency was vulnerable to legal challenges over its work. Dimon told me what he thought it would take to get Congress to confirm a director, terms that included gutting the agency’s power to regulate banks like his. By this point I was furious. Dodd-Frank had created default provisions that would automatically go into effect if there was no confirmed director, and his bank was almost certainly not in compliance with the those rules. I told him that if that happened, “I think you guys are breaking the law.”

Suddenly Dimon got quiet. He leaned back and slowly smiled. “So hit me with a fine. We can afford it.”

Dimon was proved correct. In 2014, JPMorgan was hit with $20 billion in fines. However, he still received a significant raise in 2013.

JPMorgan joins Citigroup and other big banks who are withholding $15,000 in donations to the Democratic Senatorial Campaign Committee until lawmakers softened their tone on Wall Street, according to Reuters.
 

COMMENTS

  • by griff | 4/1/2015 9:45:41 AM

    Not only can JPM afford it, Jamie can afford it because his income has just skyrocketed since the whole financial collapse. Warren's cfpb is zero help in the grand scheme of things. We would have been best off to let the SEC, FDIC and all the rest of the regulatory agencies handle the cure. As a side note, Warren is NOT president material. She serves best by being the squeaky wheel.

  • by | 4/1/2015 12:47:37 PM

    More power to ya Jamie! I hope you refuse to send a penny to the dems campaign. They don't deserve your support after the banana they gave you. You guys didn't take a dime of the gov't's bailout money and you weathered the storm and they put a target on your back because of it. I admire the fact that held your ground and proved the gov't wrong. Great job Jamie, you earn every dime of pay!!!!

    Keep up the good work!

  • by Khan-stitution | 4/1/2015 1:17:44 PM

    First of all lets get a couple of things correct. It is not Jamie diamond who got hit with the fines it was the stockholders of these banks. We have got to get over this us versus them between the Federal Government and Private enterprise.
    We are a capitalist society, banks provide the lubricant in every shape of commerce to keep the world as we know it both organized and civilized...Excessive fines over crazy stuff against the banks is not in Americas best interest or theirs if your action is undermining the net worth and capital of these companies. The doj needs to stop using fining of these institution's on their bad side, as a backdoor income tax.

    The bottom line is if people borrow money they need to understand that it has to be repaid, rather than the government entering and saying they did not know what the hell they were doing...Hello...if you borrower money it has to be repaid...if you did not repay it your in default of the economic system as we know it. Elizabeth Warren seems to think it is because there were not enough forms. I might remind everyone she has it in for banks because when she was a little girl her Dad, lost his car because he did not make the payments and that has sent this chick into badger mode. She has also amassed a fortune during the process. Google her net worth.

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