What’s this about Jamie Dimon’s condom rupturing? So far JPMorgan (NYSE:JPM)has had an enchanted life. Huge regulatory fines that would have crucified most CEO’s and Boards have not been hurtful to the current management structure.
The embarrassing losses of the London Whale and huge costs of new risk management programs are still being digested. Yet the stock has stayed spectacularly strong. Today in a strong rebound market it is up on pre-earnings speculation.
Yet many analysts are anticipating a significant drop in earnings. We all know about the jumbo fines which will be one time events. Look carefully and the mortgage market looks weak. JPMorgan results are weak and expected to stay weak.
This bodes poorly for JPMorgan, other banks and the economy.
If you believe in the law of unintended consequences; has Jamie Dimon’s condom ruptured.
Please discuss among yourselves.
George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti