Please ensure Javascript is enabled for purposes of website accessibility

Is Jamie Dimon Leaving JPMorgan for Treasury?

By John Grgurich - Nov 30, 2012 at 12:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

And if he is, what does that mean for the bank?

I swear on my mother's grave I had the same idea, but unfortunately Charlie Rose didn't come and interview me: This past Monday night, Warren Buffett told Rose his pick for Treasury Secretary would be JPMorgan Chase (JPM -1.48%) CEO Jamie Dimon. 

The guy for the job
Warren Buffett, CEO of Berkshire Hathaway (BRK.B -0.81%), is an obviously smart man, as we think alike. Here's Buffett's case for Dimon for replacing outgoing Treasury Secretary Timothy Geithner:

I think [Dimon] knows more about markets than probably anybody you could find in the world. And I think that if in the next four years we run into some kind of a chaos in markets some place -- and who knows when that can happen -- that he would think better about it, he would command the respect of foreign leaders that he might have to coordinate with. I just think he'd be the guy I'd pick for that job. 

And what of JPMorgan Chase?
Well put, Warren. I would add that Dimon is man of both intellectual and physical stature. He famously pulls no punches, and isn't easily intimidated. He's the kind of guy you want walking into a room full of ego-driven business leaders or politicians: someone who can stand his ground, but also keep an open mind. He reminds me a bit, in that sense, of George W. Bush's Treasury Secretary, Henry Paulson, a former CEO of Goldman Sachs (GS 0.48%).

So far as I can tell, neither Jamie Dimon nor President Obama have made any comments in response to Buffet's call, nor have they had anything to say on the matter, period. The one concern I have with Dimon being Secretary of the Treasury is where it might leave JPMorgan Chase. Even bearing in mind the London Whale trading debacle, Dimon is still arguably the best risk manager in banking. JPMorgan came through the financial crisis in much better shape than many other banks due in large part to his skillful leadership, and I wonder what direction the bank would take sans Dimon.

That said, I'd still like to see Dimon at Treasury. I think the country could really use someone with his unique capabilities and experience there. But Charlie Rose still hasn't called.

Thanks for reading and for thinking. Got JPMorgan on the brain now? You're in luck. The Motley Fool has just published a special report on the superbank. In it, you'll learn where the key opportunities for JPMorgan lay, where its core growth will come from, all the potential business risks, and an analysis of its leadership team. Click here now for instant access.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

JPMorgan Chase & Co. Stock Quote
JPMorgan Chase & Co.
JPM
$118.31 (-1.48%) $-1.78
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.B
$304.15 (-0.81%) $-2.49
The Goldman Sachs Group, Inc. Stock Quote
The Goldman Sachs Group, Inc.
GS
$308.20 (0.48%) $1.47

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.