Why is JP Morgan Chase such a beast?

Discussion in 'Economics' started by krazykarl, Mar 17, 2008.

  1. I admittedly do not know much about the history of the street other then the junk spoon-fed by the media and what occasional wikipedia wandering I've done.

    Last week I told someone the only bank I would buy right now is Chase due to how solid they have been. I'm half TA and half fundamentals - and looking at the data and charts I have _never_ seen a stronger stock. Never.

    I'd like to hear from some more experienced then myself as to why the Fed jumped into bed with JPM on this. I know a little about the "House that Morgan built" and that Island meeting that essentially created the Fed, but is there more to it?





    Kind Regards,
     
  2. Years ago when I paid closer attention, JP Morgan Bank was always regarded as "top notch"... I guess because they didn't go for low credit quality, highly leveraged crappy deals.... at least not as much as other banks.
     
  3. Very good topic that will hopefully generate a nice discussion. JPM is keeping this market from tumbling and giving stock turder a glimmer of hope.
     

  4. I started the topic because I have seriously never found an issue that behaved like JPM. The closest thing I can relate it to is a branch of government, if there was a market for such an instrument.


    For the record I don't own JPM, but I do have accounts there.



    Regards,
     
  5. Jamie Dimon?
     
  6. Jamie Dimon is correct. Don't forget, he learned this business under Sandy Weil at Citibank. Sandy was one of the most prolific acquirerers in financial history in his creation of Citibank. Jamie D is looking to supercede his mentor and he will.
     
  7. What about the history of JPM though? I understand this Dimon is a wiz-kid and all, but the Fed didn't agree to back the BS deal because of JPM's latest president/CEO.
     
  8. JPM has been at the forefront of trying to relief the mortgage market (ie. superfund) but when everyone else decided it was a no go after looking at their own balance sheet, there was nothing left to do for them. I think this is a small payback. I only hope that it will be contained because JPM can't be paying 2$'s for everyone else.
     
  9. drtomaso

    drtomaso

    The hilarity is that at $2/shr, they probably could. They didnt even pay cash- it was something like 0.05 of a share of JPM per BSC. Throw in the fed quaranteeing BSC's bad paper pool to the tune of 30B, and its really a win for JPM (hence their stock being up over 8% right now).

    My question is why would BSC agree to this? Their building alone must be worth more than $2/shr....