And Now For Tonight's Prime Time Event: The Durbin-Dimon Smackdown

Tyler Durden's picture

Some time ago Ben Bernanke's right hand man (and it certainly goes both ways), better known as the guy who is the gatekeeper to the entire shadow banking system, Jamie Dimon railed against debit interchange fees, claiming they are "counterproductive", represent "price fixing at its worst" and are "downright idiotic." Dick Durbin, who introduced the interchange fees amendment responds in kind.  "I recognize that Chase will likely see decreased revenue from interchange reform, but I urge you to keep some perspective. Last year Chase had $17.4 billion in profits — up 48 percent from the previous year - and a 15 percent profit margin. Your own personal compensation "jumped nearly 1,500 percent to $20.8 million in 2010" according to Reuters. In contrast, middle-class American families are struggling to get by in a tough economy — an economy that went south because of the banking industry's unregulated excesses. There is no need for you to threaten your customers with higher fees
when you and your bank are already making money hand-over-fist. And
there is no need to make such threats in response to reform that simply
tries to spare consumers from bearing the cost of interchange fees that
are anticompetitive and unreasonably high...In the coming weeks I am confident the Fed will produce a reasonable set of reforms that will enhance the efficiency, competitiveness and fairness of the debit system. This will neither be "counterproductive" nor "idiotic." It will be good news for all Americans." Poor Dick apparently does not know that you don't call out Jamie's BS - it only leads to exponential escalation in the M.A.D. doctrine until Jamie finally blows his top and threatens the world with an extinction level event if the ROI for his "shareholders" does not grow by at least 100% Y/Y? But at least this response does set the precedent that someone voicing an opinion contrary to that of JP Morgan does not lead to a horde of satanic demons flying out of a hole in the ground and dragging the offender deep into the bosom of Hades.

Full letter courtesy of the WSJ:

durbin letter

h/t Cate Long

 

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ghostfaceinvestah's picture

Poor Dimon, one of these days someone will call his bluff and he will destroy his own company out of spite.  Now THAT will be a Prime Time event to see.

cswjr's picture

If I were taking that route, I'd show the world all of the "bullion" inside JPM's new vault.  Silver to the moon, USD to the deck.

Shameful's picture

Or he'll use his access to infinite dollars to destroy all opponents. When you have infinite dollars and don't care about other people/dollar users one can work wonders.

NotApplicable's picture

And... what do infinite dollars imply? Why zero value, of course.

Destruction guaranteed!

Twindrives's picture

Jamie Dimon better enjoy his stay on Earth cause it ain't going to be so cool to be a banker where he is going. 

ghostfaceinvestah's picture

Simon Johnson's article that Durbin cites is worth reading for background:

http://economix.blogs.nytimes.com/2011/04/07/big-banks-have-a-powerful-n...

 

DeweyLeon's picture

I guess it takes a Dick to beat a dick. Here's to hoping Durbin isn't FOS on this.

redpill's picture

It's probably a regulatory clusterfuck per usual, but that doesn't mean Dimon isn't wrong also.

 

I hope Dick doesn't enjoy spending time in the hot tub.

chumbawamba's picture

Yeah, whatever.  Dick's check is in the mail for his latest soliloquy.  Everyone feels vindicated that finally someone in Washington did something, then the next distraction comes along.  And Dimon votes himself another salary hike and bonus.

When will you dupes ever learn?

I am Chumbawamba.

redpill's picture

Of course if everyone bought their shit with cash and didn't borrow a dime from these dogs, none of this would even matter.

Gold 36000's picture

Ive tried to get people to take their money out of the banks, at least twenty percent of their savings if nothing else.

chumbawamba's picture

I've basically given up trying to reach anyone anymore.  I still pontificate but it's mostly empty and hollow, just like the heads of those with whom I'm usually speaking.

The only thing you can do is keep buying ammo and get in lots of range time to prepare for what's coming.

I am Chumbawamba.

Gold 36000's picture

somebody needs to take out Jamie Dimon.

chumbawamba's picture

Are you running for president?  Because with solid and workable solutions to our problems like this, I'd vote for you.

I am Chumbawamba.

NotApplicable's picture

While solid and workable solutions are fine, I'm holding out for comprehensive ones.

4 syllables = better

Gold 36000's picture

I hadn't thought about it.

But you know I might.

My platform is simple.

I will set up an exploratory committee and get back with you.

Irwin Fletcher's picture

Just please don't replace him with Turbo Timmy.

BKbroiler's picture

How did this guy get elected to the senate?  He sounds expensive.

RockyRacoon's picture

The Durbin staffers who wrote this certainly need a promotion, but they'll probably just get jobs a JPM instead.   Moving right along....

BKbroiler's picture

"a promotion", exactly.  Soon we get the "Durbin Bill", a big mea culpa from the big boys, a pay off to water the bill down, and....nothing.

Manny's picture

Its like pouring water on a rock!

dark pools of soros's picture

waterfalls are nice this time of year

bob_dabolina's picture

Debit interchange reform.

Of all the things fucked up this is what they are waisting their time on.

Not impressed.

spekulatn's picture


Debit interchange reform.

Of all the things fucked up this is what they are waisting their time on.

 

+1 bob_dabolina.

Two dicks, same team. 

 

equity_momo's picture

The US political system is an Hamephrodite. A dick and a pussy that share the same brain.

Gold 36000's picture

it had bipartisan support and the approval of the fed.

That is what is required to move legislation nowdays.

FoodTiger's picture

Next week Dick introduces his internet tax proposal.

Arkadaba's picture

Every time you or I use a debit card (encouraged btw) - it costs us. I agree that it is small potatoes but costing mom and pop.

Spalding_Smailes's picture

J.B. Hunt Transport Services Inc. posted a 34% rise in first-quarter profit, aided by volume growth at the trucking company's intermodal business and higher rates.

The U.S. transportation sector's rebound has continued for several quarters, and trucking firms have benefited from large cuts in capacity, an uptick in demand and better pricing. J.B. Hunt said Wednesday that weather contributed to tight capacity in the trucking segment but also added to costs. "With the effects of winter weather and rapidly rising fuel costs, it was a tough quarter to get through as well as we did," J.B. Hunt Chief Executive John N. Roberts said in a prepared statement.J.B. Hunt Transport Services Inc. posted a 34% rise in first-quarter profit, aided by volume growth at the trucking company's intermodal business and higher rates.

http://online.wsj.com/article/SB1000142405274870355130457626130402525482...

 

 

Back to 2006 growth ( 96.5 )

 

MINNEAPOLIS, Minn. & LOS ANGELES, Calif., April 12, 2011 – The Ceridian-UCLA Pulse of Commerce Index™ (PCI), a real-time measure of the flow of goods to U.S. factories, retailers and consumers, rose 2.7% on a seasonally and workday adjusted basis in March, more than offsetting the 0.3% decline in January and the 1.5% decline in February. On a quarter over quarter basis, the PCI is up 3.9% at an annualized rate, a welcome acceleration from the relatively weak growth of the PCI experienced in the second half of 2010.

“The PCI growth of 3.9% for the first quarter of 2011 is a middle-of the-road number, signaling that we are not in either one of the extremes. In other words, the recession is over, but we are not yet experiencing a robust recovery,” said Ed Leamer, chief PCI economist and director of the UCLA Anderson Forecast. “This means that for the coming quarter, the PCI is expecting GDP growth close to historically normal levels of around 3% and normal increases in payroll jobs at approximately 150,000 per month. The unemployment rate is likely to hold stubbornly to its current level but could be driven down by discouraged workers dropping out of the labor force.”

“March represents the sixteenth consecutive month of year-over-year growth in the index"

http://www.ceridianindex.com/

Gold 36000's picture

There is hope in spite of obama's best efforts.

knowless's picture

What is the Ceridian-UCLA Pulse of Commerce Index™?

ceridian takes the feds numbers and adds diesel bought by truckers with a ceridian debit card..

they do not account for any independant drivers, or any company that does not use ceridian to manage their fuel purchases, so unless ceridian has a pretty significant market share, this seems pretty useless.

Catullus's picture

Hey Dick Durbin and aides of Dick Durbin, why did you vote for TARP your spineless piece of dogshit?  Check your bottom half.  You have no legs to stand on.  Go fuck yourself.

Signed,

Jamie Dimon

I am more equal than others's picture

Dicked Dimon.  More to come....

DR's picture

Now...now...WallStreet is having a tough time too...

The Wall Street Mind: Anxious.

http://nymag.com/news/business/wallstreet/john-gapper-2011-4/

"Nonetheless, despite all the reasons for celebration, the mood inside many banks is downbeat, even paranoid...... More important, many fear that the twenty-year bull run that led up to the crash, when bonuses, debt, and leverage all grew to what turned out to be unsustainable levels, may turn out to be a golden age that will never return. Wall Street feels not only loathed but also fearful."

Gold 36000's picture

they better be paranoid.

Most of them better have good security details.

Someone is going to take a few of them out eventually.

Even the taliban has talked about it.

I will celebrate and make it an annual holiday and

pilgrimage as I go piss on their graves.

BKbroiler's picture

That's true for Finance and Real Estate.  Not as many 22 year old coked out analysts making 200k at my desk these days.  The quants that replaced them are much friendlier.

HROLLER's picture

The FDIC robbed a SOLVENT Wamu and gave it's assets to JPM/Chase. It must be nice for JPM/Chase in making a killing from those deposits, credit card division, property, 2200 branches, loans, when they only aid $1.88 billion. Well, the hedge funds have tried to take control of the bankruptcy case and they are trying to give JPM approx. $2 billion in tax refunds. The equity committee is about to give them a smack-down.

Bay of Pigs's picture

Jamie "Legs" Dimon is Gozer the Gatekeeper?

apberusdisvet's picture

News Flash:  Senator Richard Durbin has been admitted to Walter Reed Hospital for mysterious chest pains.

News Flash:  Durbin in ICU; news at 11

Breaking Presidential Address:

 

My fellow Americans:  I regret to inform you of the passing of a great American.....

Auricle of Omaha's picture

I'm no fan of the banks but I offer Debit/Credit option to my customers for their convenience of paying me money. I'd love to pay less for the merchant fees, but in the end, if the charges get to be too much, I just eliminate accepting credit cards of any type. I've already eliminated American Express because it's so expensive.

Besides, I love the smell of fiat in the morning!

Gold 36000's picture

fiat does not leave an electronic record

Ned Zeppelin's picture

I can't believe people carry Amerikan Express for any reason whatsoever. 

New_Meat's picture

Pains me to admit: I'm on Jamie's side.

http://www.youtube.com/watch?v=MqIlXfkylD4

this pigfucker has got to be eventuated away from this.

- Ned

{and yes ...}

Gold 36000's picture

even the fed thinks monopolistic pricing is inefficient and anticompetitive.

The banks are free to add on extra fees in addition to the interchange fee if they wish. They are not free to collude and set minimum fees with Visa and Mastercard.

Ned Zeppelin's picture

You're entitled to your opinion. 

ZeroPower's picture

Not gonna happen.

Good on Durbin though. Im assuming a bit less than Jamie's $20MM/yr.