That is until JP Morgan published Jamie Dimon’s annual letter to shareholders today. It’s a good read, all 29 pages of it, but what immediately caught my attention was Dimon’s blistering quote, “The London Whale was the stupidest and most embarrassing situation I have ever been a part of.” He followed that up with, “We had a gap in our fortress wall. For a company that prides itself on risk management, this was a real kick in the teeth.”
Dimon’s reputation, as well as the bank’s, has certainly taken numerous hits since news of the London Whale incident first broke. But the stock has made a roaring comeback since its bottom last summer. Of course, operating results have a little something to do with that run, but you have to give Dimon credit where credit is due in the repair of both his and the company’s reputation, which has certainly contributed to the stock’s performance as well.
This refreshingly frank annual letter commentary is quintessential Jamie Dimon. We applaud him and his IR team for owning up to the gravity of the issues they have faced, to mend the relationship with their shareholders and rebuild JP Morgan’s credibility.
Stacy Feit is a Senior Vice President at Financial Relations Board with over 10 years of investor relations and Wall Street experience. She provides strategic financial communications counsel and helps clients increase their visibility within the financial community. She has guided numerous clients through major milestones, including IPOs, spin-offs, acquisitions and restructurings.