Now raising intellectual capital

from Rolfe Winkler:

Lunchtime Links 12-11

Jamie gets a deal! (Bloomberg) Prof. Linus Wilson had been estimated that warrants the government got as part of its TARP bailout for JP Morgan were worth $11-$37.  They ended up selling for $10.75. The lower price is most likely because these are not common securities, are illiquid, and therefore worth less than we all thought. Can't really complain. The market spoke. Dimon looks smart for refusing to negotiate bilaterally with Treasury to repurchase them. Treasury was driving too hard a bargain. IIn retrospect, that means the deals on TARP warrants for the likes of AmEx and Goldman ended up going off much better for taxpayers. But Hank Paulson still did far worse negotiating with banks for emergency capital than Warren Buffett. Shame.

Ginnie Mae's growth puts taxpayers on the hook (Grow/Goldfarb, WaPo...via Patrick) Ginnie packages FHA mortgages into mortgage-backed securities. It's the next Fannie/Freddie....

Stratfor: It's not just Greece, other Eurozone countries (Delivingne, Money Game)

Wealth rebound in Q3, is it sustainable? (EconomPIC data) More fun from the Fed's flow of funds report.

A Dimon in waiting?


It’s a natural impulse of journalists to herald a top-level corporate management shake-up as setting the stage for a new heir apparent to a strong-willed chief executive. And not surprisingly, that’s how some in the financial media are reacting to news of today’s changing of the guard of JPMorgan Chase’s investment banking division.

But it’s way to premature to draw any conclusions from the announcement that Jes Staley will become sole CEO of the investment bank, following the departure of Bill Winters and the elevation of Steve Black to a new post within the investment bank.

Jamie vs. Lloyd


Depending on your point of view, Jamie Dimon is the saint of Wall Street and Lloyd Blankfein is Wall Street’s biggest villain. Or vice-a-versa. Or maybe they’re both villains.

I suppose some might even argue that Dimon, the top honcho at JPMorgan Chase and Blankfein, the top gun at Goldman Sachs, are both saints. But the people in the pro-sainthood camp are keeping their thoughts to themselves these days.