Dimon Retains Chair at JP Morgan Chase (JPM)
Shares of JP Morgan Chase & Co. (JPM) closed up +0.73 or +1.40 percent to $53.02 on Tuesday, after a proposal to split the roles of chief executive and chairman was defeated in a vote by shareholders. The results left CEO and Chairman Jamie Dimon, in the same position, apparently, Dimon hinted at quitting, which made shareholders vote in his favor. The company held their annual shareholders meeting in Tampa.
Florida on Tuesday and was a victory for the company's present management. Nevertheless, only three of JP Morgan Chase's directors were re-elected to their posts despite overseeing a huge trading loss last year. Daily Chart
New York City based JP Morgan Chase & Co. is the largest bank by assets in the United States, and as of last year, the second largest bank by assets in the world. With well over $2.5 trillion in assets, Forbes magazine ranks JP Morgan & Co. as the second largest public company in the world by composite ranking. The bank's main line of business is in investment banking and asset management, treasury and securities services and private wealth management. The shareholder vote to take away the Chair from Dimon only received 32.2 percent of the vote and was a clear signal from shareholders that they want Dimon to stay. JP Morgan management drew substantial heat last year for the "London Whale" debacle, a series of bad credit trades which cost the company and estimated $6.2 billion. Despite Glass Lewis and Institutional Shareholders - the two largest advisory firms for shareholder proxy voting - advising Morgan shareholders to vote in favor of taking the chairmanship from Dimon, shareholders indicated they would rather keep Dimon running the show than risk him leaving. Chair and CEO Jamie Dimon, addressed shareholders saying, "Overall, we invest for the long run and we manage risk accordingly. At JPMorgan Chase, we play a long game, we are not a fair weather friend. Clients, communities and countries want to know that we will be there for them particularly when times are tough. Europe is one example of this and Greece, Poland, Italy, a portion of Spain got in trouble we made a decision to stay the course. We know and said in terrible scenarios we could lose $5 billion or more, but we have been doing business in these countries for than 100 years, we try to help them in time of trouble and we hope to be doing business there a 100 years from now." While Dimon has critics, as a CEO his performance for the bank has been stellar, when most banks have been having difficulties, JP Morgan has continued to deliver a strong balance sheet and steady quarterly profits. JP Morgan reported record profits last year and the company's stock is up +17 percent year to date. With a solid balance sheet a P/E of only 9.47 and continued strong earnings, JP Morgan Chase & Co. stock has made good on shareholder expectations. With Dimon staying at the helm, JPM stock is set to continue appreciating. Other News About JPM JPMorgan Packages Notes Linked to Bank Loan ETF to Tap Demand
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Published on May 22, 2013
By Jay Hawk