Dimon Consults Blankfein for Damage-Control Advice

Thursday, 16 May 2013 08:26 AM

By Dan Weil

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Who better for a beleaguered financial titan to turn to for counsel than Goldman Sachs CEO Lloyd Blankfein?

That's apparently what JPMorgan Chase CEO Jamie Dimon thinks. He is leaning on his fellow Wall Street chieftain, as he seeks to rebound from the woes at his bank and maintain his role as chairman, The New York Times, reported.

The two heavyweights have chatted privately in recent months about Dimon and JPMorgan's troubles, knowledgeable sources told the paper. The bank faces several government investigations, and Dimon is facing a nonbinding shareholder vote on whether to separate the role of chairman and CEO.

Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown

After the financial crisis of 2008 and 2009, it was Goldman Sachs that faced the inquiries and was being portrayed in the media as the villain of Wall Street.

Ironically, at that point Dimon was viewed as a savior of the banking community. Now Goldman Sachs is on the rebound, with its stock up 37 percent and Blankfein assuming the role as an old sage on Wall Street.

"I would call them foul weather friends," a knowledgeable source told The Times.

Blankfein is telling Dimon that JPMorgan's trouble will fade away just like Goldman's did, the sources said.

"This has ceased to be about the [London Whale trading loss] and it's become about whether you can trust this institution and this executive again," Paul Argenti, a professor of corporate communications at Dartmouth's Tuck School of Business, told The Times.

David Milstead of The Toronto Globe and Mail offered a mixed review of Dimon's performance.

"Mr. Dimon has, generally, been an enlightened leader at JPMorgan," he writes. "But he has also been part of the great regulatory pushback. Or, perhaps we should say, the leader of the pack that just doesn't get it."

Editor's Note:
This Wasn’t an Accident — Experts Testify on Financial Meltdown

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