Friday, January 16, 2015 12:50 PM
Two days ago, Nathaniel Popper of the New York Times reported that JPMorgan Chase CEO, Jamie Dimon, ‘lashed out at regulators and analysts’, quoting Dimon as saying, “Banks are under assault”. As I looked at Dimon’s photograph next to the Popper article I understood for the first time just how much drama there is in investment banking. Dimon’s bland, style-less garb somehow managed to say, “We are very expensive clothes” without saying anything else; his pouty poker-face seems to proclaim ‘I’m better than anyone else in the room’ while his wooden body-language chimes in that ‘he’s not really so sure’.
I had my belly-full of these hand-tailored he-divas since their 90’s quest-to-become-‘Masters-of-the-Universe’ profiteering utterly destroyed our manufacturing base. Bankers’ exertions towards making the financial industry seem masculine and powerful have only gotten more extreme with the subsequent decades. Their attempts to make purchasing power, or high credit ratings, seem equivalent to bulging pecs or abs, are absolutely operatic. I see now that Dimon, rather than an able administrator of brokers and investors, is just the front-diva for an industry giant whose welfare relies almost wholly upon his projection of his company’s image as something it truly isn’t.
Here’s a company that shares the blame, with all the other major investment banks, for the crash and Great Recession of 2008 (and the uncounted, unethical mortgage foreclosures they rushed through in its aftermath). Here’s a company that has recently been fined billions for unethical practices, a company that has just set aside another billion for further anticipated sanctions. Dimon even complains that new government insistence on greater capital holdings, which would make JPMorgan Chase a stronger element in our overall economy, would make the bank itself a weaker entity—as if that were a rational argument.
Even non-government, industry-savvy analysts say the company would operate more efficiently and more profitably if it were broken up into several smaller companies—but Dimon insists his company’s bloated structure makes it a more effective bully or, as Mr. Popper put it, “argued that the bank’s size gave it many advantages against competitors — “the model works from a business standpoint,” Mr. Dimon said.”
Finally, to put the fear of God in all of us, Dimon suggests that regulating the ethical practices of American banks will allow some other country, mostly China—the boogeyman under our beds—to become the new world leader in banking. It’s pretty neat phrasing—he’s implying that unregulated, unethical American banking is vital to national security—but what security can such economic buggery truly offer us?
So I see now that Dimon is not actually the Chief Executive Officer of his bank, but of its public image. He knows that, like money itself, JPMorgan Chase’s value is only what others believe it to be. He seeks to match the recent monetization of politics with a politicization of money. While sticking his head up his own ass, he bids us follow him—to safety. Don’t go—it stinks in there.