Dimon's Bold JPMorgan Bet Makes Him $2.2 Million Richer in a Dayby
Bank's shares climbed 8.3% Friday, most since November 2011
CEO Dimon owns 6.75 million shares in bank he's run since 2005
Jamie Dimon only had to wait a day for his big bet on JPMorgan Chase & Co. to pay off.
The bank’s shares jumped 8.3 percent in New York trading Friday -- the most since November 2011 -- after the chief executive officer spent $26.6 million for 500,000 shares. Dimon’s paper gain was about $2.2 million after the price surged to $57.49. He paid from $53.13 to $53.30 apiece on Thursday.
Financial stocks rallied as the 24-company KBW Bank Index, which had plunged 23 percent this year through Thursday, rose 5.4 percent on Friday. Dimon, 59, now owns a total of 6.75 million shares in the New York-based lender he’s run since the end of 2005. He bought the additional shares because he believes the stock is cheap after a worldwide rout in equities, according to a person with knowledge of his thinking.
Not every CEO’s investment in their firm has done as well. Jes Staley, 59, who once reported to Dimon at JPMorgan before being named to run Barclays Plc last year, has lost about 2.1 million pounds ($3 million) since buying 2.79 million shares in the London-based bank. Barclays has fallen 33 percent since Nov. 4, about a week after Staley took over as CEO, when he purchased the stock for 6.5 million pounds.