CSLA bank analyst Mike Mayo is going to be at the JP Morgan shareholder this morning in Tampa, says the Wall Street Journal.
We imagine CEO Jamie Dimon’s thrilled about that.
Dimon faces a controversial vote as to whether or not he should remain both CEO and Chairman of the board at JP Morgan. Mayo — known for being an agitator for better bank governance at shareholder meetings, on conference calls, and on TV appearances — has said he’s going to Tampa to hear more than just ‘The Jamie Show’ — he wants to hear from the board.
“Jamie Dimon, you are saying: ‘We have a strong board.’ Let me see the board, let me hear from Lee Raymond,” Mr. Mayo said, referring to J.P. Morgan’s presiding director and former Exxon Mobil Corp Chairman and CEO. “If it’s just a Jamie show, that would be very disappointing.”
Mayo has said that he believes people in his profession are too “whimpy” and it’s no secret that he and Dimon have their differences. On JP Morgan Investor Day back in February, the two shared this ever-so polite exchange:
Mayo: UBS is required to have 10 per cent common equity and they’ve chosen to have 13 per cent common equity because they say it’s a competitive advantage. Their customers appreciate that. So how much higher would you go above 9.5 per cent? And would you view higher capital as a competitive advantage?
Dimon: You know, so here’s a company I’ve run with higher capital my entire life. Ok so [when] we went into this crisis we were at 7 per cent Basel I, which was higher than most other people. And I do this chart … 7 per cent quarter by quarter ’08, ’09, never went down. It was clearly adequate for us. The equivalent of that 7 today is 14. So 9.5 Basel 3 is the is equivalent to 14 under Basel 1. Double. I personally think it’s plenty of capital. … We have to meet the regulator requirement and we want you to be completely comfortable. I personally think they’d be comfortable the way we are today.
Mayo: I think what I hear UBS saying in the presentation is that if I’m an affluent customer I’ll feel a lot better going to UBS if they have 13.5 capital ratio than another big bank with a 10 per cent ratio. Do you agree with that?
Dimon: You would go to UBS and not JPMorgan?
Mayo: I didn’t say that. That’s their argument.
Dimon: That’s why I’m richer than you.
Today’s meeting should get interesting.