Why aren’t more CEOs doing this? We don’t know exactly why or what particular financial reasons Dimon
and wife did this, but it could be a way of showing employees and investors his strong confidence in the viability of JP
Morgan.
From BusinessWeek: JPMorgan Chase CEO Jamie Dimon, his wife
and a limited-liability company linked to him bought $17.1 million of the
bank’s shares after the stock slid amid trading losses. Trusts tied to Dimon and the
limited-liability firm sold $13.5 million in preferred shares in the New
York-based bank, according to a regulatory filing today with the U.S.
Securities and Exchange Commission. The transactions occurred yesterday and
today, the filing shows.
JPMorgan, the biggest U.S. bank by assets, has declined 24
percent since Bloomberg News first reported on April 5 that a unit of the New
York-based bank had amassed credit-derivative bets big enough to move markets.
The firm said July 13 that losses on the trades had reached $5.8 billion this
year and may eventually amount to as much as $7.5 billion.
Dimon, 56, and his wife directly or indirectly hold more
than 5.6 million shares of the bank, according to the filing. The holdings are
worth about $190 million, based on today’s closing price of $33.90...
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