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Bahl & Gaynor portfolio manager Matt McCormick weighs in on Dimon’s testimony, banking regulation and the state of financials.
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I JPMorgan CEO Jamie Dimon was grilled by lawmakers 2 hours this morning but our next guest says it was just political theater he says diamond should be facing -- shareholders not politicians.
Joining us now Matt McCormick portfolio manager and bank analyst at bailing -- which has six point two billion dollars of assets under management.
Okay he even before this happened you knew it was kind of become going to be good booking theater -- -- Well I I think first off you have to look at many of those senators receive considerable political contributions from Jamie Dimon and his -- so I doubt they're gonna.
Hit it hit -- to heart is that -- one thing every politician likes or contributions however.
When you look at the facts.
This -- was really a bad trade JPMorgan share prices fell considerably.
I think what this does Tracy gives more ammo to.
That critics from JP -- -- those in support of Dodd-Frank and you saw that.
With the Fed ramming through highs and higher capital requirements for all banks and so I think this gives me.
More posture concern it makes me not want to own JPMorgan or other money center banks is I think there's more questions and answers.
Really because.
On May tenth when they broke the news that there was this trading -- the stock was up 400074.
Cents today.
It's DF it's about 34 dollar I'm sorry it was forty dollars and 74 cents today it's 3486.
But it's up today based on his performance so that doesn't make you somewhat confident then he could turn this around.
I think Jamie Dimon is an excellent manager and I think you know this is a question I think of a bad judgment in and I think really the reason why he was in front of them is that he utilized or not he but JPMorgan utilize our funds our government's funds however.
It's still not against the law to make a bad trader have errors in judgment if that's -- case.
You know Robert lots the former vice chair of GM who green light -- the Chevy Volt should be quaking in his boots.
I think you need to look at something here that this is political theater this was the idea to tell people hey were to tell voters and an election year they were on top of this this is a concern.
However I look at JPMorgan is one of the better banks out there but they still have issues they still have.
Exposure Europe whether or not Jamie -- -- Greece I still have concerns about Greece.
Europe Italy Spain at all I think -- should avoid them and focus on common areas less volatile areas in financials and money center bank.
It's so -- you staying away from the financials in general then is what you're saying but at the same time are you worried about what's gonna happen to the overall economy if they keep throwing out new rules regulations.
And tightening things up of the what happened connect.
Sure I mean we have select financials we like the Canadian banks we -- and reits.
But we don't know money center banks and we certainly don't know European ranks but my concern is it Jamie Dimon was even and supported this.
-- higher capital ratios -- -- remember Dexia the bank that went out had the highest tier one capital ratio and Europe before went bankrupt so that's.
Not the answer it's judgment it's management clearly.
JP diamond or JP JPMorgan and Jamie Dimon.
Had issues and -- freely admitted to them.
But a higher capital requirements don't guarantee returns this is a very difficult and volatile environment and I don't see any clear fixes for Europe in higher regulatory concerns.
Make me wanna step back and wait till the clarity comes forth and I don't see it happening anytime -- we know the you know the banks might face another downgrade I do think though you know he sat front of this hand -- was honesty was humble.
It could very well set precedent for potentially CEOs going forward do you think we'll see more honesty more transparency added these banks may be because -- best.
I certainly hope so but I I don't like the idea CEOs having to give up the what was alternately -- private transaction was shareholder money where they failed.
I don't want this CEO of -- coming -- have to justify way why some of their businesses can do well this is the shareholders' money not the government's money they -- -- they pay the price it's time to move on yeah I'm with you Matt McCormick of -- Gainer thank you very much for being.
