Is JPMorgan's (JPM) Jamie Dimon A Good Liar?
JPMorgan Chase's (NYSE: JPM) CEO Jamie Dimon is clearly a smart guy, but he may also be a smart liar. On CNBC, and other media, Dimon said that the accusations against the banks that they aren't making loans are unfounded. Dimon said they lent out $100 billion in new credit in the fourth quarter.
Dimon is giving the impression to the market that JPMorgan hasn't slowed down lending. How can this be? It just doesn't make sense.
JPMorgan is now technically three companies combined: JP Morgan Chase, Bear Stearns and Washington Mutual. Granted Bear and WaMu were saved by JP Morgan, but they are still part of JP Morgan now. There is no way in hell that JP Morgan is lending out as much today, as all three of these firms independently were lending out a year ago. NO WAY!
In fact, due to the WaMu acquisition, average total deposits at JPMorgan grew 63% to $339.8 billion, including $126.3 billion attributable to WaMu, yet mortgage loan originations were $28.1 billion, down 30% from the prior year and down 25% from the prior quarter. With that much more in deposits, mortgage loans should be up not down. In addition, mortgage loans are the main problem with the balance sheets of the banks, you would think in an act of 'self-preservation' they would be lending like crazy.
You're not slowing down lending Mr. Dimon? - B.S.
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