Dimon’s Success Creates Headaches for JPMorgan
The bank’s dominance has generated two big problems — excess capital, and a lofty stock valuation.
Jamie Dimon’s successful stewardship of JPMorgan brings its own problems.
Photographer: Al Drago/Bloomberg“The size, scale and scope of JPMorgan Chase also offer huge advantages,” Jamie Dimon wrote in a letter to shareholders — his first as chief executive officer at the end of 2005. Two decades later, the claim seems almost quaint. The bank’s balance sheet is now four times larger; its stock market capitalization has ballooned by more than five times; and profit this year is forecast to be nearly seven times higher than then.
JPMorgan Chase & Co. has left the competition behind, even its biggest and most consistent peers including Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley. At more than $800 billion, the bank is now worth as much as these three combined.