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Mendon Capital Advisors President Anton Schutz weighs in on the Senate report grilling JPMorgan on the London Whale.
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Chief investment officer of -- in capital advisors specializing.
In financial stocks joining us now from Rochester new York and I'm good to see -- it happened a year ago why is the senate.
Now presenting this up this report and still grilling name JPMorgan exactly.
Yes.
Well the first question have to ask is why aren't they fixing the budget -- as any American -- -- question the second the second response to that is.
The Fed yesterday came -- and let JPMorgan buy back six billion dollars of its stock increases dividend from thirty cents to 38 cents.
So the Fed feels comfortable enough they can go spend a lot of capital.
Going out and returning -- to shareholders.
Clearly the regulators have a responsibility here include individuals -- things wrong.
And they've all worked together JPMorgan where the regulators try to solve all those responsibilities.
And there's more work to do is no doubt about it.
At this point in time the people doing the investigation.
I'm not sure can spell the word derivative and I think it's this disappointing that there wasting everybody's time doing this when -- which Goldman Sachs last year they spent.
Millions of taxpayer dollars and and achieve nothing.
So it's up to the regulators to do this they are doing their job no one questions the -- -- the OCC and the competency and how they're handling JPMorgan so.
The end of the day this is politicians trying to get reelected and demonize the banks yet again.
What still needs to be fixed at JPMorgan has if you look at this report it's it is damning.
That there were internal warnings that were ignored -- the -- the panel alleges that JPMorgan misled investors and regulators.
And you did say that they're not there yet and terms of total control of risk management and -- what -- what is left to do within the bank.
Well one -- saying they're not there yet you know the Fed asked JPMorgan Goldman Sachs to re submit some of their capital plans later this year -- And I think some of that is is and how they've you know -- risk on the balance -- some of the methodologies.
Clearly the numbers that JPMorgan Goldman shared with -- with Wall Street while before the the stress -- Their capital ratios looked stronger.
Then what the Fed stress tests revealed and so there's going to be some change in methodology and it but again as they passed -- they ought to return a lot of capital.
So you know to me this is this is some -- all things it's very important for the regulatory bodies to do their work.
And obviously the -- -- -- bodies are all work here with JPMorgan.
Clearly SEC has has has you know role here because of how you know earnings are stated or not statement.
So I'm I'm sure they're fully aware -- so again a you know to to have this public hearing really has accomplished a lot of things.
-- special Jamie Dimon isn't even there -- that I -- just get the feeling that these senators are exhausted by mr.
-- -- we -- get them on the ride and on the road so and they don't know how to deal with that.
One last thing.
I.
And you know I think it's you know one of the best companies and in this business.
And you know on I'm happy -- increasing dividend and you know what -- bigger buyback but at the end of the day it's it's still a very strong company in very healthy.
Has great market journal businesses so I think it's it's a great long term costs.
Anti great to say thank you Sam lives and conscious we will speak to you again paerson.
