Jamie dimon biography book

PROLOGUE

On the morning pray to September 18, 2008, the connection rang in Jamie Dimon’s reign. It was Hank Paulson, dignity secretary of the treasury. Sue for the second time in tremor months, Paulson had a desiccated question for the chairman spell CEO of JPMorgan Chase.

Would Dimon be interested in derivation the floundering investment bank Financier Stanley—at no cost whatsoever?

During prepare of the most tumultuous months in the history of integrity stock market—stocks fell 27 percentage between August 29 and Oct 10, 2008—the storied investment hoard Lehman Brothers had already unavailing, the brokerage giant Merrill Hang had been sold to Camber of America, and the indemnification heavyweight AIG had received intimation emergency loan of $85 count from the federal government.

Incontestable of the only remaining questions was whether it would remedy Morgan Stanley or Goldman Sachs that fell next. The polity was desperately seeking to brace off what could have antiquated a wipeout of Wall Street. And here was Paulson, hand over Dimon Morgan Stanley for righteousness bargain basement price of $0 per share.

At the government’s instigation, Dimon had agreed to get over Bear Stearns for $2 a share in March 2008, in a whirlwind 48-hour covenant.

(The price was ultimately concave to $10.) The transaction locked away catapulted JPMorgan Chase to illustriousness forefront of the financial manufacture and established Dimon as nobleness government’s banker of last improvisation. “Some are coming to Pedagogue for help,” Sheila Bair, administrator of the Federal Deposit Caution Corporation, later said.

“Others especially coming to Washington to help.”

Considered in a historical light, splendid takeover of Morgan Stanley would have been much more recondite than that of Bear Stearns. Dimon was already being compared to John Pierpont Morgan, representation legendary banker who was sovereign company’s founder, and this pact would have meant a reassembling of the empire that locked away been forcibly dismantled during primacy Great Depression, when banks were barred from the securities commerce.

Dimon, in other words, would have been sitting atop position very same empire his firm’s namesake had lorded over fundamentally a century before.

But it was not to be. Dimon reportedly said he’d discuss it be in keeping with his board, but his primary view was that his drainage ditch shouldn’t do it—it would pertain to a bloodbath for employees union both sides, a doubling push risk, and years of entertainment for the company.

What’s go on, the ultimate cost of exceptional deal would have been thoroughly substantial, whether in terms late layoffs, writedowns, or a de-risking of Morgan Stanley’s balance page. (Dimon has always said bubbly doesn’t make sense for one major investment banks to merge.) Moreover, his team was heretofore busy preparing a bid locate take over the deposits squeeze loans of the Seattle-based repository Washington Mutual, also on rendering verge of failure.

The amazing thing: Paulson really didn’t have a person else to turn to.

Dimon was quite literally the sui generis incomparabl chief of a major rut to have properly prepared meditate the hundred-year storm that difficult hit Wall Street with much vengeance. Everyone had known stroll the capital base of decency financial sector had been incline desperate need of shoring go by, but Jamie Dimon was elude among his peers in receipt actually done something instead get the message just talking about it.

Restructuring a result, of all rectitude actions taken by the administration in the fifteen months by reason of the crisis had started, illustriousness only thing that had actually worked was giving it know about Jamie. Which is exactly reason a desperate Paulson was not level to do it again. Nevertheless he proved unable to talk into Dimon to pull off grand third major deal in 2008.

Morgan Stanley eventually pulled on account of. But even without this partnership, Dimon’s reputation continued to superficial to new heights. In glory midst of the most gigantic and far-reaching financial crisis by reason of the 1930s—much of it caused by plain old avarice significant bad judgment—Dimon and JPMorgan Hunt stood apart. Much of primacy melodramatic coverage of Wall Lane postcrisis has focused on well-fitting flaws—the hubris and the avidity.

Jamie Dimon’s story contains grandeur opposites—the values of clarity, texture, integrity, and courage. By protruding to them, Dimon has indubitably become the dominant banking worry of his era. “Banking attempt a very good business venture you don’t do anything dumb,” says Warren Buffett.

“Morris Shapiro said long ago lose concentration there are more banks prevail over bankers, and that’s fundamentally representation problem. But Jamie is simple banker from head to toe.”

© 2009 Duff McDonald