JP Morgan's board decided to give Jamie Dimon a raise. The amount was not disclosed, but it will be somewhere above the $11.3 million he earned last year. And the year before that he earned about $20 million.
JP Morgan, the firm, earned $17 billion last year on assets of $2.5 trillion. That is a 0.7% return on assets. For this he's making tens of millions?
In contrast Ben Bernanke steered the Fed to a 3.0% return on assets of around $3 trillion (2012) yet he earned only $199,000.
Both the Fed and JP Morgan are banks. Their investments are roughly the same--government securities and loans. So why does Dimon earn anywhere from 50 to 100 times more than Bernanke?
Not only that, but the Fed's earnings ($90 billion in 2012) were pretty much all turned back over to taxpayers whereas JP Morgan's earnings were a result of PAYMENTS FROM TAXPAYERS.
That's right, the vast reserves of JP Morgan, which were put there by the government (taxpayers) earned interest from payments made by the Treasury (taxpayers). So in reality, were it not for taxpayers GIVING JP MORGAN MONEY, it would have earned nothing.
In other words, not only does JP Morgan serve no purpose other than maybe transaction clearing (and that's only if I want to be kind), it's also a parasite on taxpayers.
At the very MOST, Jamie Dimon should earn $46,000 based on performance when you look at what Bernake did at the Fed.
And this guy is treated like some god. It's really outrageous.
6 comments:
There are not two economies which make up the macroeconomic snapshit of the USA. The banking system has created a third economy which acts like a buffer but also as a buttress against a free economy.
This is analogous to Alexander de Toqueville analysis how the lawyer class would rise eventually to subvert and block free and equal access to liberty and justice as intended by the framers of the constitution whose efforts focused on removal of Tyranny.
Therefore removal of tyranny by banks and lawyers who work hand and hand to subvert the USA currency and market access by small business must be addresses as well as their tyranny against the president which largely a function of rascism.
Bravo Mike Norman! On a scale of 1 to 10 I give your comment an 11! You should use it in your next video rant. If you don't, may I borrow some or all of the content to use in one of my videos?
Be my guest!
Or as Simon Johnson put it in the New York Times:
“There is no sector in the modern United States or Britain that is willing to stand up to big banks in the political arena. And top financial-sector executives continue to enjoy such high prestige that they are still called upon to run public finances. Politicians continue to defer to the supposed wisdom of these individuals.”
All one has to do is look at their compensation relative to their performance. Shareholders in JPM would be better off owning a Certificate of Deposit. These guys are no Masters of the Universe.
+1 Ed
I sent the comment to a bunch of my friends…more like this Mike…good framing and to the point.
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