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.
