Dimon: JPM Had `Tin Ear’ in Dealing With Regulators

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April 9 (Bloomberg) –- Bloomberg’s Julie Hyman reports on JPMorgan’s annual letter to shareholders. She speaks on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

The s&p up 20 monday the session high of 1872, with the nasdaq closing the day up 1.75%. we have seen a rally back from the losses it had seen just last week.

A lot of this is the result of the fed.

Investors are breathing a sigh of relief that interest rate will not go up soon.

We want to get additional comment on the fed minutes and the market from julie hyman.

We continue the phenomenon rate where the fed comes out and said something and the markets are spooked because the rates are going to go up, and then you see a reassurance happen.

That is what seems to be happening once again.

It is all about the mulligan today, and this time on the upside.

We had momentum really catch investor attention, whether it is falling or rising.

Facebook is up again today.

You saw a lot of the biotech up again, and a lot of the technology.

I know you are looking at some breaking news over here.

Looking at some news on new jersey.

But anyway, this market has clearly seen a lot of upside here.

Because of the fed.

That is a big part of it.

The way, we want to move onto to the roundup.

These are the stories we are talking about ahead of tomorrow.

Nat is kicking it off.

We were talking about toyota earlier.

People all day today were saying it is one of the biggest recalls in history.

And it is not even the second-biggest recall for toyota.

I don't know where everyone is getting this.

6.3 8 million vehicles to be exact.

Toyota recalled 7 million cars last year and in 2010 for the accelerator, 10 million vehicles.

The recall situation could be worse.

Basically, what you will see this year is carmakers, because of the criminal find that toyota got for the 2010 accelerator issue, and because of what mary barra went through because of congress, you will see a lot of carmakers doing a lot of recalls.

As far as the breakdown, you can see here at 760,000 front stable steering column brackets.

By the way, actually 6'4" me -- 6.4 million vehicles.

About 3.5 million of these cars were recalled for a very serious issue, driver-side airbags not going off because the wiring was not properly feeling the weight of passengers and then being activated.

Those are the only life-threatening issues.

We have so far this year 11 million cars recalled and it's only april 9. last year, 22 million cars were recalled in the and higher year.

Expect to see that eclipsed.

How do you think they are handling it versus g.m.? g.m. has been a pr nightmare.

How would you contrast toyota?

Not much different, because a lot of these vehicles that they are recalling are as old as 2004. you got highlanders, tacoma, corolla, camry -- pretty much every imaginable toyota except for avalon being recalled.

These are decade-old cars as well.

Why haven't they caught the sooner you go the same -- why haven't they caught this sooner?

I think they actually knew some of these things were there and now they are just trying to get everything with one net.

I think so.

When i first saw it and i saw "ignition starters," i thought, oh, my gosh, is this another supplier that has made the same mistakes?

I think what they are doing is drawing a big loop around them.

You will see all automakers doing as many recalls as possible right away.

By the way, people always think about recalls as a bad thing.

They are not always.

Not any product is going to be perfect.

When there is an issue, you want the automaker to fess up and fix it.

And not just fess up.

My car is already in there.

If it is in there and this is a problem we know about, let's take care of it now.

You get them all at one time.

It doesn't hold down the cost.

It is billions of dollars, but -- the fact that they are saying it will cost $600 million is not that much for this many cars.

Recently, comcast and time warner to cable are facing skepticism from members of the jet -- the senate judiciary committee, among them, senator al franken.

I am against this deal, because i believe it does not meet either test.

I believe this deal will result in fewer choices, higher prices, and even worse service for my constituents.

But comcast executive vice president says franken is wrong.

There is nothing in this transaction that will cause anyone's cable bills to go up.

He did go on to say that this transaction will "make us bigger " and that is a good thing, not a problem.

Of course he said that.

I'm not sure that is what you want to say before the congressional committee.

Look at the man behind the curtain.

I don't think it is about the cost of things going up.

I'm worried about what will go in in terms of content.

If you own the base of subscribers and all that broadband, then you can control what is going to go into that pipeline and which ones you make more money on, and skew it one way or another.

There's only so much on 10th i can go in those pipelines.

-- only so much content that can go into those pipelines.

There was a start golf network, for example, that was saying they would have a tougher time getting on compared to the golf network.

If you owned 40% of the broadband access in this country, i don't care about cable.

You can live without cable.

You cannot live without a broadband internet connection.

Did anyone else find it funny that al franken was the one?

I mean, because he used to be on nbc and saturday night live, and the family pedigree.

I thought that was an interesting family twist.

I was waiting for smiley.

There is a future for all of us, from cable to politics.

Google is getting into the hotel business.

The website is adding more to its hotel business listings as it tries to deal with hotel booking startup software room 77. the plan is to get people to go through google directly and to encourage more hotel operators to place ads on the site, bypassing advertising.

It is kind of risky.

The clients of google, those that advertise, are a lot of these travel companies.

What is the expression -- don't bite the hand that feeds you?

It is five percent of their total business, and we are talking about a market that is $50 billion.

It is a big, big market.

This is not new for google.

I have spoken at a couple of google conferences for travel.

They've been in this travel business for a while and you think it goes with the maps and a lot of different things they are having.

What they are trying to do is capture more and more of his personal space.

We see all of these things that are coming on board -- google glass has captured all of that content.

Taking over the world.

And they have done in error -- other areas, too.

Think about shopping, for example.

Google is trying to be everything to everyone.

It is in keeping with their strategy.

And think about priceline.

Can you afford to say, ok, google, you are continuing with us -- competing with us and we are not going to advertise with you?

They can take -- pay comcast whatever they want.

And by the way, the service that is already horrible can get worse.

It doesn't matter.

How do you feel about this?

I'm just waiting for google fiber.

Speaking of another service from google, when we all get google fiber, then there will be competition.

I have fiber every single day.

I don't know what you are talking about.

This is basically a monopoly.

And it is not an antitrust issue?

Don't worry.

David cohen says, don't worry.

It's all good.

He promises good.

Let's get to china for a second.

The economy there may be flowing, but its effort -- its appetite for peta apparently is not.

Chinese customers want american food, and because of that, the biggest cheese supplier is australian company.

Cheese demand will surge 20% in the next two years.

The company is also investing in output to cut down the length of time it takes to make cheese.

Its first pizza chain was in 1990. they will increase the number of pizza huts this year.

My favorite part, they have mozzarella pulling contests in pizza hut.

And it is not the pizza you think it is.

When you eat pizza in china, it's a whole different kind of pizza.

It has pork, sushi come on different types of fish.

Last time, it had lots of corn.

Can you get it just plain get up -- just plain?

I do like the margarita.

Can you get one of those?

Rex yes.

-- yes.

But pizza in italy and france is different than what you get here.

What you are seeing is a real trend.

It is not so much about market share.

Companies in north america or south america are going for market share.

In this case, they just want to sell one pizza to every person in china and they have trouble than doubled.

I want to set the record straight.

We are saying that china is interested in american food, therefore pizza.

Let's not forget.

Where was pizza invented?

In italy.

There was a legend that the pizza was actually invented by the chinese.

That it was what i was going to say.

Well, posta is from china.

But pizza the hut is fully americanized.

Pizza the hut?

You just wrapped up fast food in one sentence.

Pizza the hut.

Matt and i were looking at new jersey and it had its rating lowered just not.

The outlook is still stable.

And it is still investment grade.

Coming up, hillary clinton says she is considering a run and political donors want her to make a decision.

We will explain next.

? will she, or won't she?

Former secretary of state clinton spoke about the potential of a 2016 run.

I will continue to think about it for a while.

[applause] and part of it is because -- the hard questions are not, do you want to be president?

Can you win?

The hard questions are why would you want to do this, and what can you offer that could make a difference?

Ok, big news.

She said she is thinking about it.

She still hasn't announced it, but at least she is thinking about it.

What does this mean in terms of big-time political donors?

It is leaving them in a holding pattern.

Joining me is julie and jonathan allen.

Jonathan is the author of "state secrets." donors appear to be waiting on the sidelines saying, who should i give my money to, and this is having an effect on who might potentially run.

Is it not?

That's right, and it is not just hillary keeping democrats waiting.

We found out that on the republican side, there is a lot of donor anticipation as to who their main business-friendly candidate will be.

Right now, many are waiting to see what jeb bush, the former florida governor, will do.

Because, why not have a race with hillary clinton versus jeb bush?

Clinton versus bush all over again.

Save money on your bumper stickers.

Ring out the old one.

[laughter] all the same cast of characters.

What does it mean for those candidates, jonathan, that are thinking about running and need to wait to see what the landscape looks like?

What does it mean for their ability to raise funds?

It is extreme and difficult not only to raise money at this point, but also to create campaign organizations.

The shadow operative primary is a factor.

People are waiting to see if jeb bush on the republican side or hillary clinton on the democrat side are going to get in.

They will not sign up with a candidate.

Agar rubio in florida has a particularly big problem with this because most of his big donors are former jeb bush people.

And they are more loyal to jeb bush and the bush family than they are to marco rubio.

He in particular has an issue.

If jeb bush doesn't run or hillary clinton doesn't run, will we be in a situation, jonathan, where the candidates don't have enough money raised?

Or will the floodgates open and it all comes in at the last minute?

Certainly, at the start, a lot of candidates are getting a slower beginning than hillary clinton is, certainly on the democrat side.

Right now, she has three super packs actively raising money and donor lists, contact list.

Even as she is saying she is considering a campaign, an active campaign is going on, on her behalf.

Don't believe what you hear all the time.

This is going to be something that will be difficult, certainly for democrats come up to contend with in the short-term.

We talked to a former bush strategist and -- george w. bush strategist, i should say, and he said that republicans will have enough money to compete the general election, regardless of who gets out of the gate.

It sounds like the money will be there regardless.

The money will be there, but there is no doubt that hillary has a huge head start if she does get into the race.

As jonathan said, there are three super packs working on her behalf.

And there is really nothing similar going on with the republican side because everyone is waiting to see what happens with jeb bush, and waiting to see what happens with chris christie and the bridge scandal in new jersey and sought meanwhile, there are all these other potential publican candidates that are having a tough time with fundraisers.

When will we know?

I will ask this question to both of you guys.

When army actually going to know?

It sounds to me -- when will we actually know?

It sounds to me like hillary is going to go for it.

Jonathan, what do you think?

There is in a nine percent chance -- 99% chance she will run.

The thing about it, she says she's considering it -- i mean, you thought brock obama took a long time to make a decision.

Why is this the decision now?

Why not get out in front of all of this?

Is there a danger to that?

Absolutely.

The minute she becomes explicitly an overtly political, her approval ratings will go down.

People like her much better when she is seen as the former secretary of state were going around the country s speaking on these issues that are not particularly partisan or controversial.

The moment she becomes brand a candidate, she will be less popular.

Thank you so much.

With investors turning away from tech, go daddy is one you should be aware of as it preps for an ipo.

We will have more after the break.

? i'm julie hyman.

We have breaking news on jpmorgan and jamie dimon, who was commenting in the bank's annual letter to shareholders, saying that the legal issues in 2013 were the most nerve-racking experience.

Not surprisingly, there were large awards and settlements with the u.s. government on a number of different issues.

Also, jpmorgan is citing jamie dimon's key achievements in the decision to raise his pay for last year.

He sees banks charging more for revolvers, and he also said uncommitted lines of credit may make a comeback.

He said there was a high price to be paid with legal issues and focus on the business.

Separately, he says jpmorgan has hired more than 6300 veterans since 2011. obviously, speaking on a number of different issues.

Also saying that jpmorgan had a tin ear listening to regulators and needs to do a better job listening to what they want, and presumably to the public as well.

Those are some of the highlights from the jpmorgan annual letter to shareholders, and some of the highlights of jamie dimon's comments in particular.

Thanks for that, julie hyman.

You are talking about go daddy.

This is a website hosting company that is set to have its own ipo later this year.

These companies have taken a real beating in the stock market, all those momentum names we have been talking about.

Cristina alesci helped to break the news on go daddy.

She joins us with more.

This current environment we are in where we are seeing a selloff in these big tech names, is that something that go daddy should be worried about?

Is that, perhaps why they have announced this ipo now rather than later?

Going public now is definitely more challenging that it was about six months ago, definitely more challenging than a year ago.

Granted, these guys have a little bit of time because they have just ordered the process and they will probably go public sometime in september.

But in just the last month alone and the disparity we have seen with some of these ipos and how they have performed, it's quite stark.

You have grubhub at about 30% more than the range.

And then you have a software company called 59 -- five9 that is three percent below the proposed range.

There is a real disparity in these names, and part of that is because not all growth is created equally.

The disparity in investors, what is it that they like right now and what is it they are shying away from?

Really interesting.

They are looking at more than just topline growth.

They are looking at margins.

For example, grubhub reported margins at about 23%. it is a business that is very easy to understand.

When you look at five9 and the software and service space in particular, a little more difficult to understand and the margins in that business were not as good.

In fact, their biggest business, their enterprise business, they reported in some cases gross negative margins.

That worries investors.

Did the bankers just price it too high?

There is always a risk of -- of course, there's execution risk here.

But the thing is that this is the first time since 2011 that a software company priced below the range.

That is a pretty powerful statistic.

Go down even and get out while you can.

It better go.

Thank you very much.

Remember the duke lacrosse scandal that cost the university $100 million?

Bill cohen joins us.

He ? got a book coming up.

?

This text has been automatically generated. It may not be 100% accurate.

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