Can JP Morgan do without Jamie Dimon?
Jamie Dimon's health has sparked discussion about who could succeed him as CEO of JP Morgan.
Shares in JP Morgan (JPM), like most equities, have been “pummelled” in the past week, says Hugh Son on CNBC. But investors received a rare bit of good news when it was revealed that CEO Jamie Dimon (pictured) has returned home after successful emergency heart surgery.
While Dimon, who is the “longest-tenured CEO of an American megabank”, is expected to return to his job later this year, the incident has “sparked discussion about potential successors”.
It’s not surprising that investors are anxious about Dimon’s health, says The Economist. Over 15 years Dimon “has built JPM into the world’s most reputable bank”. It is America’s biggest by assets and its “most profitable”, last year “breaking the world record for bank earnings in a single year”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
While Dimon has been “lucky”, with JPM benefiting from the changes in bank regulation, he’s also made some sensible strategic decisions, such as the decision to focus on “ridding the bank of flab” and then shoring up JPM’s balance sheet before the global financial crisis erupted ten years ago.
Still, there are plenty of “long-standing lieutenants” who are “ready to step in”, such as Daniel Pinto and Gordon Smith, says Jeffrey Goldfarb for Breakingviews. None of them will be able to emulate Dimon’s “statesman-like role”, but they should be able to reassure customers and shareholders that the success he has spearheaded “is poised to continue. Dimon’s departure will also give some sense of whether he has “properly prepared the institution to function without him”.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
5 steps to shield your money from the taxman before the Budget
Experts have warned Labour is planning a tax raid in its upcoming Budget. We share five steps to shield your money from the taxman
By Katie Williams Published
-
The trading apps that let you put fractional shares in an ISA
Advice HMRC is set to change ISA rules to allow fractional shares to be included in the tax wrapper. Here are the trading platforms and trading apps that support this.
By Marc Shoffman Published
-
The highest yielding S&P 500 Dividend Aristocrats
Tips Dividends are a key component of investment returns in the long-term. A portfolio of dividend aristocrats is a great way to build wealth and a sustainable income stream.
By Jacob Wolinsky Published
-
2023 will be a bumper year for stocks. Here’s how to play the rally
Tips Dominic Frisby explains why he thinks the market rally could have further to run in 2023 despite macroeconomic headwinds
By Dominic Frisby Published
-
China’s post-covid investment boom off to a slow start. Should you still invest in China?
Advice Investors are no longer bullish on the China shop but the gloomy consensus on Beijing’s economy might be unfair. Should you invest in China?
By Kalpana Fitzpatrick Last updated
-
Stock market crash? This time it’s (slightly) different
Opinion The bears expecting a stock market crash have got it wrong, says Max King.
By Max King Published
-
3 UK shares to buy yielding up to 17%
Tips 3 UK shares top stocks to buy now, according to Alex Harvey of Momentum Global Investment Management.
By Rupert Hargreaves Published
-
Invest in Brazil as the country gets set for growth
Cover Story It’s time to invest in Brazil as the economic powerhouse looks set to profit from the two key trends of the next 20 years: the global energy transition and population growth, says James McKeigue.
By James McKeigue Published
-
Shining a light on India
Advertisement Feature Despite some short-term challenges, India remains very attractive for investors. Here’s why.
By moneyweek Published
-
Crash? What crash?
Sponsored October is often said to be a month of stockmarket crashes. But that's not true for this year, says Max King. A host of positive triggers are lining up for equities, says Max King.
By Max King Published