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 JPM sells $50 million in structured notes. JPMorgan Leads Surge in Indonesia-Tied Note Sales to 3-Year High Note sales linked to Indonesian bonds surges. Other Stocks in the News New Xbox May Keep Microsoft in the Game New video game console previewed at Tuesday event. Staples Quarterly Profit Misses Analysts' Estimates Office supply retailer reports lower than expected earnings. Copyright 2013 by InvestorGuide.com, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA InvestorGuide.com, Inc.) or its employees responsible.

Published on May 22, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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