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Pious Perverts See other Pious Perverts Articles Title: Jamie Dimon on the ‘Traumatic TARP Experience’ Update | 2:08 p.m. Wall Street is still reeling from one of the most wrenching periods in its history. But for Jamie Dimon, the head of the banking giant JPMorgan Chase, it was the firm’s shining moment. Mr. Dimon declared Tuesday that JPMorgan was coming off what may have been its “finest year ever,” as he listed the firm’s achievements in a period when some of its largest rivals fell or were acquired by JPMorgan itself. While the speech could have been a mere victory lap, it was more: Mr. Dimon took the opportunity to criticize aspects of the government’s financial bailout, which he referred to as the “traumatic TARP experience.” Speaking to shareholders at the firm’s annual meeting in downtown Manhattan, and to many others over a Webcast, Mr. Dimon acknowledged that JPMorgan’s 2008 profits were lower than in the previous year. But he noted that the firm earned a profit in every quarter, and said its two major acquisitions — those of Bear Stearns and Washington Mutual — were already bringing major benefits. One of the sharpest moments in Mr. Dimon’s speech came when he turned to the Troubled Asset Relief Program, or TARP. In general, he expressed support for the program, which started with the nine largest banks, including JPMorgan, taking a total of $125 billion in funds from the government in hopes of stabilizing the financial system. Mr. Dimon repeated his previous assertion that JPMorgan never needed the money, but was asked to take it — and complied for the sake of the weaker banks. “I personally believe that the government acted bravely and boldly in a very difficult environment,” he said. But Mr. Dimon also argued that the TARP has since morphed into something more “painful.” The TARP comes with limits on executive compensation, which have many banks already angling to exit the program. Indeed, because it took part in the TARP, JPMorgan has to give its shareholders a nonbinding vote Tuesday on executive pay. However, Mr. Dimon’s speech focused on a different aspect: The TARP’s restrictions on the hiring of foreign workers through the H1-B visa program, which he called a “complete and utter disgrace.” In essence, the TARP legislation requires participating banks to show that they will not displace an American from a job filled by an immigrant. Mr. Dimon made a point to mention that his firm, which has a global work force of nearly 225,000, had to rescind job offers to 40 to 50 foreign students because of the TARP, sending the message, in his words, that “you’re not welcome here.” Update: JPMorgan later clarified to DealBook that the students were placed at international locations at the firm. JPMorgan has said it planned to return the TARP money as soon as possible, but the question of when remains: Mr. Dimon said Tuesday that he had no new details about the timing of a TARP payback.
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#2. To: Prefrontal Vortex (#0)
Didn't see that coming.
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