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Mayo: More Jobs at Risk at J.P. Morgan

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  • Description

    CLSA bank analyst Mike Mayo reacts to Jamie Dimon's testimony on J.P. Morgan's trading loss.

  • Duration 4:44
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You aren't so Jamie got his testimony over the multibillion dollar trading loss sending investors the stock is climbing what exactly did investors learned that is giving the stock a pop look about a better than 3% right now author of exile on Wall Street.

And -- top -- bank analyst at CL as a Mike -- Now joins me on the phone to join and to weigh in -- thanks so much for joining us appreciate it.

Frederick that -- somebody who has covered Jamie -- for a long time and you've had your own back and forth with him that is chronicled in your -- he's been critical of your analysis in the past.

Do really well.

What did you think of the testimony in general.

What it is still audience just one audience is the mass market and I think he.

Not the copper off the -- the answer the questions -- -- -- I he did not make light of the issue he apologize sincerely and it gave from the great confidence that this wouldn't happen again.

But the other audience is.

Yeah -- it's investing community and I think there's still many questions that -- not adequately answered.

Answer for that audience Q why was the risk model changed.

And why what it changed to they have to -- restate the number by a factor of true.

And while I was the restated number double what -- the respect to us the prior year what was it almost double what it is yeah investment bank -- -- investment bank.

-- speak up and face I think withdraw it is really not that integrated and I got complacent.

It is -- checks and balances we're the other they hired in addition to instantly -- your phone call.

I realized I had drilled you know -- there's a lot more at stake.

See it change your that was -- was a big -- disease kind of tried to downplay that saying that that's not you know sort of what the essential problem lies you think that is a big.

Edit the big deal I mean that's a crack in the business model the analyst behind that financial supermarkets -- financial conglomerate or everyone -- college is that.

You could centralize the -- structure -- Expenses -- -- sources.

Or especially risk management and that showed that that they had the market centralized at but -- it needs to beat out you'd need a congressional hearing to discuss -- I'm not sure -- talk about debt banking practices.

-- Jamie Dimon would not be the first -- my book by any stretch.

Yeah it's a -- about some of the news that was made and that's because he didn't give us a lot of clarity on the trade which you know a lot of people were not expecting because of course it gives us too many signals us -- What that actually -- -- people lining up on the other side of the trade.

You know essentially trying to kill them on this there's only so much detail -- can give that would be Smart he did talk about claw backs that was that new -- you.

Again out of it -- and talking about this for a while -- said that they had not it's call back the past and there's no question.

A valued in this case.

Jamie diamond Jamie diamond if you outperform the industry very it's the intra -- -- opportunity now it's outperformed the industry in his reaction that big public this cap and one thing -- -- do it Cadbury crest bought back.

I'm sure -- overall at JPMorgan and they could think about changing some of these.

-- on their borders at least as of their risk committees.

Do you think we'll see big names -- I -- specifically giving debt bonds is in trouble.

-- -- note yesterday saying that it is.

She opposed responsibility overseas a relief activities I don't know it's actually you know who who what -- and yet we're all going to -- -- that.

But this year well it's certainly -- melodic -- Let me ask about one of the best moments I've got a one of us existing -- -- moment senator senator Jeff from Berkeley is saying that.

You know basically the government came in -- -- JPMorgan and gave them the TARP bailout if that wasn't for the government Jamie Dimon wouldn't even have a job right now it sort of went on.

And you saw Jamie really bristle and then say you know that you're wrong and the facts that's not -- happening he had to sort of take a step back in control -- at that point.

Who -- the right and that argument and do you think Jamie Dimon handled that well.

Well I think.

What Jamie Dimon -- day to day.

Is that there's.

Losses insignificant -- to trade dollar balance sheet and that it shouldn't be analyzed for micromanaging.

Because that's what a constraint.

And I'd give him credit for biting his -- as much if he did today and simply being very apologetic -- this but not.

Jamie -- await the seeing him any appropriately adjusted for the audience -- -- yeah Opel wolf they had one issue here yet -- a -- Statement saying well we are out the industry -- for the industry -- I don't like the idea group -- all banks together we -- the worst performing banks accountable.

I think that's what cap was the supposed to work as -- -- saying oh industries that.

My -- great insight thanks for joining us thank.

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