J.P. Morgan's Dimon says new laws have hurt his company

[TomCADem]

Source: Washington Post

NEW YORK -- J.P. Morgan Chase cut consumer access to credit and canceled credit cards in response to legislation signed into law by President Obama last year, the bank's chief executive Jamie Dimon said. The credit card reform act, which went into effect in February, could cost the bank up to $750 million in annual profits, he added.

Despite the losses, "we believe that many, but not all, of the changes made were completely appropriate," Dimon said in his annual letter to shareholders, which was released late Wednesday.

Dimon said enacting the bill in the middle of a recession reduced access to credit for some consumers. The act prevents credit card companies from raising interest rates arbitrarily and charging certain fees. It also mandates that all of a cardholder's payments be applied to the balance carrying the highest interest rate.

J.P. Morgan is expected to take a hit of $500 million to $750 million from the new rules, according to Dimon, who added that the bank will no longer offer cards to 15 percent of its customers because they pose too much of a risk in light of the regulations. The bank has reduced credit lines, canceled cards that had not been used for a long time, and substantially reduced offers for introductory rates and promotional balance transfers.


Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/01/AR2010040103684.html

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Well, here is JP Morgan complaining about how protecting consumers hurts them. Afterall, if you can't sock consumers with hidden fees and arbitrarily changing interest rates, how can you expect banks to make money?

[bemildred]

1. Good. Fuck J. P. Morgan.

These dinosaurs all have to go anyway.

[OhioChick]

2. Agreed. n/t

[roguevalley]

17. I hope they die and take JP Morgan's toxic name with them.

[meeshrox]

3. Boo fucking hoo!

WTF? Does he really think that the "commoners" are going to care about the plight of JP Morgan? UGH!

[BrklynLiberal]

4. Jamie Dimon was in charge of Smith-Barney when I worked there. He was a total schmuck back then,

and I see, he has not changed at all....

[Lint Head]

5. Hey Dimon! You're still a rich asshole!

[CLANG]

All I can do is...

:cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry: :cry:

[midnight]

6. K&R

[City Lights]

7. Cry me a river.

:nopity:

[AlbertCat]

8. 750 million? Peanuts!

But they feel the changes were appropriate...

Are they trying to play victim of circumstance here? Are we supposed to be impressed that they will "take it" for their customers?

Surely they don't think we feel sorry for them!

[metapunditedgy]

9. Asshole. Taxpayers have subsidized JPM and his own personal fortune, especially

in the Recession. He's a snake-oil salesman, and should be in prison with the lot of them.

(Ask me how I really feel.)

[The Magistrate]

10. The Boy Is Slow, Sir, But He Seems To Be Catching On At Last

The law is supposed to put at least some small crimp in his thieving....

[Zoeisright]

11. Oh waaaaahhhhh!

I hate those fuckers. If they disappeared from the face of the earth the world would be a better place.

[truthisfreedom]

12. In other news, consumers were saved up to $750 million dollars in reduced fees and charges this year

as a result of President Obama signing protective legislation into law.

[InkAddict]

13. Cry me a river! n/t

[neverforget]

14. cry me a fucking river.

:nopity:

[Hardrada]

15. Dimon? Didn't he use to play for the Red Sox?

[WCGreen]

16. Well Well Well, Jamie....

Usery has gone slightly out of style...

[Robb]

18. Good. nt

[troubledamerican]

19. Vatican: Stop hurting the victimizer. Jamie "Demon" Dimon: Stop hurting the victimizer.