posted by Jessica Hall on Jan 29
JPMorgan Chase & Co has “plenty of capital” and wants governments to stop talking about nationalizing banks.
“JPMorgan would be fine if we stopped talking about (the) damn nationalisation of banks … we’ve got plenty of capital,” Chief Executive Jamie Dimon said at the annual meeting of the World Economic Forum in Davos, Switzerland.
Underlining the bank’s confidence, Dimon said JP Morgan had lent $150 billion in the last 90 days including $50 billion in the interbank market, also to European and British banks, but added: “It’s scary because at the end of the day you have to survive.”
“I’m hoping by the end of the year we’re coming out of the crisis,” he told journalists.
Dimon admitted bankers had done “some really stupid things” but he also hit out at policy makers and regulators, adding that the Basel II capital rules has flaws and needed to be adjusted.
“I haven’t yet seen people get all the right people in a room, close the damn door and come out with a solution,” he said.
The U.S. and other countries are considering setting up a so-called “bad bank” to mop up the toxic assets of stricken lenders. It would take billions of dollars of the worst assets off banks’ balance sheets.
Dimon welcomed the idea: “It’s all in the execution. If it’s executed well, set up properly, it would be good.”
DEALS OF THE DAY:
** South Korea denied a report it would offer for sale stakes in chipmaker Hynix Semiconductor and 17 other companies via international auction, but confirmed plans to attract investment into state-run assets.
** Lloyds Banking Group is gearing up to consider offers for some of its life assurance assets as it tries to strengthen its balance sheet, the Financial Times reported.
** Hospital chain Fortis Healthcare Ltd said it has formed a joined venture with Mauritius-based CIEL group to acquire a controlling stake in Clinique Darne, Mauritius’ largest private hospital. Financial details were not disclosed.
** Credit Suisse has proposed disbanding an asset management joint venture formed with South Korea’s No. 2 financial holding group, Woori Finance Holdings, Woori said.
** Consumer electronics company Polaroid Holding Co said it has agreed to sell its assets including the Polaroid name and brand to a private equity firm based in Luxembourg.
** The German government held constructive talks with German ball-bearings maker Schaeffler and its partner Continental AG late on Wednesday, the Economy Minister said early on Thursday.
** Media technology group Thomson SA said it will explore with its main creditors and potential investors solutions to shore up its balance sheet as it warned it was likely to breach one of its debt covenants.
