This transcript is automatically generated
JPMorgan CEO Jamie Dimon feeling the heat after a massive trading lot hasn't diminished its star power and how will this impact the banking business going forward.
-- gas -- as these is if you don't have hurt a bit by the way you -- -- barely holding it back.
Why is that this is a very serious subject earlier beating us to talk about your boozing -- okay we're gonna get into that.
My -- cruising -- -- but let's just go to the other Morgan Morgan Stanley here's what the Fox Business Network as pleasant as learned.
From sources close to Morgan Stanley senior executive particularly in the investment banking department are -- asking for are being asked to compile lists.
Of the bottom 15%.
Up performers we should point out that this is fairly normal but here's what we know.
Is that because this is a bad quarter a lot of people think they're gonna happen to this bottom 15%.
And there is a likely play -- likely well the according to people inside.
The investment banking department they are expecting lay -- because of the environment we should point -- I did speak with the spokeswoman that you be more ahead Morgan Stanley.
Which she said is simply this we evaluate market conditions all the time right now we are not planning.
-- but she clearly left open the the potential sources of capital -- with all the tech IPOs pivotal read on some maintain.
What are the what are the fees on those things I don't think they're gonna lose money but the fees aren't so great and this isn't the best.
Quarter up from went up from what I understand.
For business in the investment bank and barbs at least that's what they're telling me clearly they're compiling the lists a lot of people inside think something's gonna happen any -- lay -- It's a 15% bottom but they -- look at the dot bottom 15% if the quarter doesn't turn around.
Is a good chance I think.
That there's going to be some cuts over that we don't know yet that's great that's curve for New York housing that's -- for -- -- well I don't I don't think it's gonna be that severe but there's going to be cut if it doesn't turn around we're gonna see what I remember James -- was on our show.
Saying he didn't see any reason to do but apparently this court has been so bad so good and investment banking.
That's what they're telling us and we to point out the spokeswoman.
-- Morgan -- is not ruling it out to OK so that's Morgan -- -- to JPMorgan businesses the big story to two billion dollar loss.
In the London chief investment off in the chief it will with what what does that offices Shiite Romanoff is your chief global -- as we should point out that.
And -- what's the name out of China I mean I didn't even know her until -- -- drew is out there.
Here's what we know about this.
There will be other people out to this will trickle out is -- -- -- from that office in the next couple days and weeks.
We should point out that I've been told point blank that the guy -- known as the London -- Who is allegedly at the -- this I don't believe it is and they don't know fee is of these of these losses which involved you know.
He hedges that we -- -- possibility that he's not a percent of the losses like I was there are currently Bruno is skill.
Right because he's one of many people in that office what they would -- tell me and -- JPMorgan is that.
He's the least of our problems OK the bigger problem that they have right now.
I will tell you is that JPMorgan.
Is worried about its reputation in Washington we do know this State's congressional staffers are -- the Fox Business Network that they've been in some sort of and it's at least not modest hiring spree of lobbyists in that office.
And that this aggressive lobbying particularly against Dodd-Frank has somehow -- -- need both Republicans and Democrats they've been very aggressive down there.
So right now what we do know is that the trading loss given all this stuff this aggressive stuff has kind of neutered then in Washington -- people say it is neutered.
There -- lobbying effort against.
Against financial reform.
Of people -- -- piling -- to JPMorgan.
Finally get on the on JPMorgan that criticizing then well it'll be it'll be awhile Jamie Dimon we should.
We should point out that there's a lot there's a huge political -- -- TP Jamie Dimon supported the vast majority of Dodd-Frank right I'd -- 80% he sits -- percent I was 80%.
He was against proprietary trading and he was there again Mr.
-- your family and very little about that we should put out he he's against the ban on proprietary trading -- -- that's part of the seven -- 8%.
The ban on proprietary trading involves is is as you know vocal rule where you can used company money.
Basically to take it take positions in the market.
Taken extensively you can't you cancer is against the and a prop trading I think he doesn't care about -- -- though he does because the way it's been defined as you cannot make markets for customers and that ratings -- they -- and you can't and it's -- -- -- customers should exist as an investment bank.
So he's been neutered in that cause whether or not Dodd-Frank and -- gets gets pushed to the limit in wind is you know the worst case scenario.
Remains to be seen -- detail a lot of Republicans.
We're we're saying that you know pushing it to the limit was dead in the water anyway we're gonna have a presidential election if you do have.
Romney winning the presidency which is not added that he is not might not be at a new ordinary if you look at the polls right now -- if -- the Republicans taken over the senate.
I believe Dodd-Frank is likely gone now what do you replace with.
It's what I've been telling you guys -- days now the banks will have to be -- will have become smaller they need to be much more manageable right.