Jamie Dimon
By
Giorgia Scaturro journalist
In 2006, the United States was doing great: the “Dotcom Bubble” crisis was over, the war in Iraq, brought by President George W. Bush to find alleged Weapons of Mass Destruction (WMDs), which were eventually never found, gave an unprecedented boost to defence and military company stock prices. Wall Street was reaching its peak: finance was conquering the world. Everybody was making money. During a high-profile dinner with big names in New York City, Jamie Dimon, then relatively new as CEO of JPMorgan, received an unusual request: a senior official asked if he could be interested in the bank acquiring Bear Stearns, one of the oldest investment banks on Wall Street. Calmly, Dimon listened, knowing full well that this was a defining moment not just for his career but for the entire financial system: everybody was happy about stocks and markets, but Dimon also knew that many banks were overloaded with some $300 billion in CDOs; sophisticated yet dangerous financial products which originated from the hyper-exuberant housing market. The banker refused the offer: the following year, the “Housing Bubble” burst. Soon after, Bearn Sterns started having issues and, in spring 2008, collapsed. The Federal Reserve assisted JPMorgan Chase by providing $29 billion in loans to bail-out the bank. This was just the beginning: no sooner had the summer ended that Lehman Brothers, one of the biggest investment banks in the world, also collapsed, pushing the entire global economy to the brink of apocalypse. Dimon, nevertheless, came out of the storm pretty unscathed. JP Morgan went on to buy Bear Sterns at a fire sale price of $10 per share, while two years before when Dimon was approached at a power-dinner, the stock was valued at $130 per share.
In hindsight, it is easy to criticize any specific action, but, in total, the government succeeded in avoiding a calamity."
MY BIG FAT GREEK FAMILY
Born in 1956, Jamie Dimon grew up in a place where finance ran deep: his parents, Theodore Dimon and Themis Kalòs were Greek immigrants. Jamie’s grandfather, upon arriving in the United States, changed the family name from Papademetriou, which was too Greek and too immigrant-sounding, into the American-sounding Dimon: he had previously worked as a banker in Smyrna, modern Izmir in Turkey, and Athens. Like all the Greek expats in New York, they settled down in Astoria, in the borough of Queens which till today teems with pita gyros and Greek tavernas. His paternal grandfather managed to find a job as a stockbroker for Shearson. Like father, like son, Theodore Dimon, Jamie’s father, also worked at Shearson, where he became an executive. Despite refusing of their original surname, the household in which Jamie was raised held deep respect for hard work and financial prudence. Jamie spent his childhood in the city, attending Browning School, an elite institution in Manhattan. Later he enrolled at Tufts University, where he studied psychology and economics. This dual focus on human behavior and economic systems gave Dimon a nuanced understanding of the markets, which would prove insightful in his future career. After graduating summa cum laude, he secured himself a place at Harvard Business School, where he graduated with distinction in 1982. They say the purpose of college isn’t to receive a higher education (despite the high fees), but to pay for access to a network and entry into an exclusive inner circle. This is especially true for Dimon. . It was at Harvard that he met Sandy Weill, the man who would shape his life and future.
MASTER & COMMANDER
Sandy Weill is a towering figure in American finance: he saw in Jamie Dimon a raw and adaptable talent. After Harvard, Dimon joined Weill at American Express, where he worked closely with his mentor to build his financial acumen. Dimon quickly rose through the ranks, distinguishing himself with his analytical skills and grasp of the corporate landscape. In 1986, while the Star Wars were raging among US and Soviet Union, Weill left American Express to take over Commercial Credit, a struggling consumer finance company: Dimon followed him. There he cut his teeth as a true leader: as Chief Financial Officer, Dimon helped Weill orchestrate deals that would culminate in the birth of Citigroup, one of the world’s largest financial conglomerates. The merger with Primerica in the 1980s and the acquisition of Travelers in 1993, followed by the 1998 merger of Travelers and Citicorp, were pivotal deals that signalled Dimon’s growing reputation as a skilled dealmaker during an era marked by figures like Gordon Gekko and the rise of yuppie culture.
Despite its success, or maybe because of it, the long-standing venture between Weill and Dimon was doomed to end. In 1998, due to internal clashes, Dimon left Citigroup: many believed it to be due to a fallout caused by his rising ambition. “Too many roosters in the henhouse” is a common proverb which fits well. It was a bitter departure indeed, but one that would eventually propel Dimon to even greater heights.
THE SECOND CITY
Leaving Citigroup, and its gargantuan headquarter in Midtown (while all the other investment banks moved downtown near the Twin Towers), Dimon headed for a colder place: his next chapter unfolded at Bank One, a regional bank based in Chicago, the “Second City” on the freezing lake Michigan. In 2000, Dimon was named CEO: it was a down-shift from Citi, a world leading bank. It was also a step into an organization that had been struggling with a series of financial and operational issues. True to his form, Dimon took on the challenge with his pragmatism and incisive decision-making. Over the next few years, he restructured the bank, cut costs, and instilled a disciplined culture: as a result, Bank One turned a profit, and Dimon was once again on Wall Street’s radar as one of the most capable bankers.
His success at Bank One didn’t go unnoticed. In 2004, JPMorgan, then the third-largest bank in the US, acquired Bank One in a deal valued at $58 billion. Dimon was appointed Chief Operating Officer of the entire JPMorgan Group. Just a year later, he ascended to the role of CEO. Sixteen years after his departure from Citi, he was at the top of one of Wall Street’s most prized banks. From this point on, Dimon’s trajectory would become inextricably linked to the fate of one of the largest and most influential financial institutions in the world.
PILLARS OF THE EARTH
Dimon’s leadership of JPMorgan has been famously defined by his handling of the 2008 global financial crisis. As the housing bubble burst and the banking industry crumbled under the weight of bad loans and complex derivatives, the bank stood apart. Under Dimon’s guidance, it had largely avoided the subprime mortgage exposure that had ravaged other institutions, starting from Countrywide. Prudence allowed JPMorgan to be in a position of strength while others faltered.
In March 2008, when Bear Stearns neared collapse, the US government called on Dimon to orchestrate a rescue: this time he was ready to say yes. The bail-out, seen by some as controversial, cemented Dimon’s status as one of the central figures in stabilizing the financial markets.
When Lehman Brothers fell, JPMorgan (as well as Goldman Sachs) emerged as the pillars of stability. Dimon’s cautious approach and keen ability to navigate the intricacies of financial risk management paid off. JPMorgan not only survived the crisis but emerged stronger: after the Bear Sterns rescue, Dimon also took over Washington Mutual, or WaMu as everybody calls it on the market: at the time it was the largest retail bank failure in US history.
Most decisions are not binary, and there are usually better answers waiting to be found if you do the analysis and involve the right people.
THE LONDON WHALE
While Dimon’s leadership during the financial crisis was lauded, his tenure on the banks of the River Thames would be threatened four years later. In 2012, the London Whale scandal exploded inside the bank’s skyscraper in Canary Wharf: a trader in the bank’s London office lost over $6 billion in a risky trading strategy. It centered around massive trading losses in the bank's Chief Investment Office (CIO), specifically from Bruno Iksil, a trader based in London nicknamed the "London Whale" due to the outsized positions he took in credit derivatives trades that were initially aimed at hedging the bank’s risks. The scandal unfolded as JPMorgan Chase’s trading strategy became increasingly speculative and risky, causing the positions to become difficult to unwind without further loss. When these trades moved against the bank, the losses quickly multiplied. The scandal raised questions about Dimon’s oversight of the bank’s risk management practices and insufficient regulatory checks within the bank. Dimon publicly admitted that the bank had made “egregious mistakes” and moved swiftly to tighten controls. While the losses were significant, Dimon’s candid approach in addressing the problem allowed JPMorgan to recover quickly, once again underscoring his resilience as a leader.
Away from the demands of banking, Jamie Dimon’s personal life could be regarded as pretty dull, compared to other flamboyant billionaires. In 1983 he married Judith Kent, whom he met at Harvard Business School. Two years after the London scandal, Dimon faced one of his most personal challenges when he was diagnosed with throat cancer. After chemotherapy, he made a full recovery, while remaining involved in his role throughout the whole treatment: he showed personal resilience and also a deep commitment to the institution he had built into a global financial powerhouse. This titanic effort earned him a titanic compensation as well: his annual packages often rank among the highest for CEOs globally. In 2022, Dimon netted an annual salary of $34.5 million, a sum that included base salary, bonuses, and stock options. Throughout his time at JPMorgan, he amassed a net worth estimated to be in the region of $1.5 billion. Over the years, there have been public discussions about whether such large payouts are appropriate, particularly in the wake of economic downturns.
CALL OF DUTY
The man does not lack in outspoken views on a wide range of issues, from financial regulation to politics. He has often argued for a balanced approach to banking regulations, supporting oversight while warning against excessive government interference. In his annual letters to shareholders, Dimon has repeatedly emphasized the importance of a strong, well-regulated banking system, while also highlighting the need for policies that foster economic growth and job creation.
In 2016, the year Donald Trump scrambled US presidential elections as well as world politics, Dimon was a shortlisted name for the role of Treasury Secretary under both Republican and Democratic administrations, though he ultimately chose to remain at JPMorgan. He was floated once again for a Treasury position by both the Trump and Harris campaigns in 2024. His pragmatic way to issues like taxation, infrastructure, and job creation earned him respect on both sides of the political aisle. Perhaps due to his high political profile, which commands an institutional stance, Dimon has long been one of the most outspoken critics of Bitcoin and cryptocurrencies. He labelled the digital coin a “fraud” on multiple occasions, famously stating in 2017 that he would fire any JPMorgan trader caught investing in cryptocurrencies. Dimon has often compared the rise of Bitcoin to the speculative bubbles of the past, predicting that the frenzy around digital assets will end in significant losses for many investors: curiously enough, said by a CEO who himself profited from bubbles and other investor’s losses.
However, Dimon has expressed admiration for blockchain’s potential to revolutionize the financial system by increasing transparency, reducing transaction costs, and improving the speed of international transfers. JPMorgan itself reversed its stand, investing in blockchain technology, even creating its own digital currency for internal use, JPM Coin, aimed at facilitating large-scale institutional payments.
America has the best hand ever dealt to any country on this planet, ever. Yes, we have problems, but you travel around the world, you'll see we have it all.
Under Dimon’s leadership, JPMorgan Chase has continued to grow, solidifying its position as the largest bank in the United States in terms of assets: it boasts operations in over 100 countries and more than 250,000 employees. Dimon proved the ability to navigate for almost 20 years through turbulent times sitting on a powerful yet difficult chair: many others would have fallen off or been ousted years before.
