Tag Archives: risk

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JPMorgan Chase investor/customer disconnect

Who matters more: investors or customers?

“Just because we’re stupid doesn’t mean everybody else was,” said CEO Jamie Dimon in announcing that JPMorgan Chase had lost at least $2 billion in some very big, very stupid “hedges” against risk.

During the bank’s annual meeting yesterday, Dimon was generally supported by investors. One even told Dimon, “We think you are doing a fabulous job.”

But I suspect customers might not agree.

If you have your life savings of $27,408 sitting in the bank, it might not comfort you to hear the CEO simultaneously say a $2 billion loss was manageable and argue against regulations designed to force banks to take less risk.

You might yearn for the days when bankers were cautious, and community-minded, and perhaps even humble.

You might wonder how a bank could lose that much money protecting itself against risk.

You might wonder what could happen if a crisis happened unexpectedly, when the bank can incur losses this big even as our economy slowly gets better.

You might wish the bank spent less time trying to make even more money each quarter, and more time protecting your savings.

But most of all, you might yearn for better service.