What’s Next for JPMorgan After Record $13B Fine?

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Oct. 21 (Bloomberg) -- Robert Kaplan of Harvard Business School and Bloomberg Contributing Editor Bill Cohan discuss what comes next for JPMorgan and CEO Jamie Dimon as the company tentatively agrees to pay a $13 billion settlement to end civil claims over its sales of mortgage bonds. They speak on Bloomberg Television’s “Market Makers.”

Jamie dimon has questioned whether the government is being fair and reasonable.

Is it?

Let's ask rob kaplan and bill cohan.

Bill is a bloomberg television contributing editor and columnist for bloomberg view.

Rob, let's start with you.

Fair, reasonable echo implored -- reasonable?

Important questions to be asking.

I don't know whether it is fair or not but i do know that jamie dimon has gone way beyond that.

He wants to get this settled and wants to move on.

I think wall street has the same adult that same attitude.

Let's get it settled.

-- has the same attitude.

Let's get it settled.

Your lawyers have to be making a case.

You have to fight the good fight for the sake of your shareholders.

This is about the omission of wrongdoing of what the wording is.

What will the wording be?

Jpmorgan stock is up to mid it has been a 52-week high.

This means the market is happy, the numbers are out there.

Even though it is not officially announced and officially agreed to yet, there are still a potential criminal lawsuit still hanging out there against them.

I think he did fight the good fight.

He started at 1 billion and ended up at 13 billion dollars.

Obviously he did not have that much negotiating leverage.

Clocks it is the say about jamie dimon as -- witnesses say about jamie dimon as a leader?

Think about the brand.

I cannot find a person, an insider saying that jamie dimon is doing anything but the best he possibly can.

He's taking a leadership role in this.

He went down to the justice department and negotiated this himself.

He has gone from being the king of wall street to looking more like samson's passion -- like samson fashion -- like sam sebastian.

It has to take a toll on him.

He is doing the best he can with it.

What is taking a toll on him actually mean?

Jpmorgan, when you take the litigation aside, it outperformed everything else in the market.

Nobody in a big institution likes -- big institution like this likes going to cocktail parties and having people ask them what is the problem with your business?

He realizes the have to move on and get focused on doing business.

Here is my question for the investment banker you used to be.

Knowing what he knows now, would amy diamond have done these deals again?

It is not just -- i would jamie dimon have done these tales -- these deals again?

I think he would say that he might have been tougher and what he insisted on.

If he had known this would happen he would have insisted on some protection.

Some from contingent liabilities . he said on a conference call -- but not in writing.

You know, rob, he bought the liability of these two companies when he bought the equity of these two companies.

I think a bolt -- on both the deals he got a great deal.

He got it billion dollars of free clap -- of free cash flow.

That is $17 billion.

He would definitely do those deals again.

I am sure he anticipated on some level there would be this backlash.

Here's the part that hurt him, the london whale had nothing to do with this.

If it weren't for that i think we would be looking at this big settlement very differently.

I think we would have a lot more leverage in negotiating with eric holder.

As far as shareholders and employees, he seems unscathed through that.

Jpmorgan does not feel that all unscathed.

There has been a lot of management turnover.

They have enough and they know you cannot go through this forever.

You have to move on.

Have not heard much yet about what the criminal prosecutors in the doj may do.

Helping a risk does this present to the bank and perhaps senior executives like dimon himself?

Obviously we have not seen the documents the dotj has seen.

I would suspect it is a pretty low risk of an actual criminal -- it should have been applied to bear and waterloo.

The message coming from the bank is that this has all been legacy bear.

I have been hearing it it has been -- it has been a large percentage.

Chance of a criminal prosecution is pretty low.

What all is said and done, when the board says you have been through too much, you cannot be in the seat anymore, is there someone we should have our eye on that we think could be the next ceo of j.p. morgan?

The board is not going to do that.

He is going to go out on his own terms and getting this settled is part of that.

It is a slow revenue environment.

They have to focus on what to do in a rather anemic environment.

Would you like -- and all the pressure they were under.

It is analogous to goldman's solutions were self-inflicted.

There was question about their commitment to clients.

The only modestly good thing about the settlements -- again, the london whale is a taint.

I don't think this will call into question whether they are committed to their clients.

Is jamie handling it better than lloyd did?

From a public purse to that from a public relations perspective?

Yes he did.

-- from a public relations perspective?

Yes he did.

I wrote about the good and the bad.

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


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