JP Morgan CEO Jamie Dimon said his bank may continue to buy back more stock after repurchasing $8 billion in 2011, reasoning that the company stock is below its intrinsic value right now, in an interview with CNBC’s Maria Bartiromo today.
“We’re just going to keep building the company, the stock will eventually take care of itself,” he said in response to comments about the hit JP Morgan shares have taken this year.
Dimon was bullish on the economy, saying he expected a mild recovery better than a year ago and the housing market to hit a bottom.
Like he had done in previous public comments, Dimon continued to emphasise the stability of his company, saying that the bank will be capitalised above global requirements, do well on its Fed stress tests and is growing “organically” by adding more services.
“I’m hoping what it shows is that American banks, with an exception or two, are extremely well capitalised and stable,” Dimon said of the stress tests, adding that he expects JP Morgan to hold on to about 7% to 8% of its Tier 1 capital in response to the 5% requirement.
Although Dimon commented on controversial topics such as JP Morgan’s involvement in MF Global and the Volcker Rule, he skimmed over them with cursory statements such as “JP Morgan is just another creditor.” in response to MF Global and “We have no proprietary trading. We just want to make sure that market making… will keep that bid/ask spread narrow.” to the Volcker Rule.
When Bartiromo asked Dimon if he was supporting anyone in the upcoming election, Dimon replied he does not publicly support politicians, as per a New York Fed Rule.