Dimon Unexpectedly Reverses On Bitcoin: "I'm Not Going To Talk About Bitcoin Anymore"

And here comes Citi, realizing it desperately needs to get on the bandwagon now before it's too late:


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It's probably not a coincidence that on the day bitcoin hit new all time highs above $5,200, and just over a week after the WSJ reported that Goldman is planning a bitcoin trading operation, JPMorgan seems to be changing it tune.

With Bitcoin soaring nearly 100% from the bottom of the sharp selloff following Jamie Dimon's slam of cryptocurrencies as "frauds" exactly one month ago today, bitcoin was one of the more popular topics on today's earnings call, where JPMorgan CFO Marianne Lake confirmed what everyone already knew, namely that the technology underlying bitcoin - blockchain - is something the bank is investing in, and is "very optimistic" about the underlying technology of distributed ledgers and blockchain.

However, what was more interesting is that when asked whether the bank would consider looking at opportunities in digital currencies, Lake responded that JPMorgan is "open-minded" to potential use in the future for cryptocurrencies that are regulated.

This just one month after her boss, JPM CEO Jamie Dimon lashed out at the cryptocurrency, calling it a "fraud" which is "worse than tulip bulbs. It won't end well", will "blow up" and "someone is going to get killed." Oh, and that "any JPMorgan trader trading bitcoin" will be "fired for being stupid."

Fast forward one month, when bitcoin just hit a new all time high due to relentless demand, having completely ignored both China's ban of exchange trading and Dimon's rant, and with everyone - including Goldman - wanting to be part of it, JPMorgan clearly has no qualms about its "fiduciary obligation" when it comes to taking clients' money to help put them in what it has called - on the public record - a fraud.

That said, Jamie Dimon was far less verbose today, and as Bloomberg notes he wasn't keen to talk about bitcoin again when asked about the cryptocurrency during today's call.  Dimon said “I wouldn’t put this high in the category of important things in the world, but I’m not going to talk about bitcoin anymore.” Later he added that JPMorgan moves trillions of dollars a day “effectively digitally” today. "It’s not cash," he said.

Suddenly portraying itself as one of the biggest supporters of crypto tech, Lake said the bank is "at the forefront of trying to look at the efficiency, scaleability of the platforms" and use cases for clients. Lake added that blockchain is "transformational for the financial services industry" and the bank is "working hard [and] investing money" in it. 

Still, Lake said the bank is "very open minded to the potential use cases....for digital currencies that are properly regulated" though that area is "quite nascent." Which, needless to say, sounds quite  different from "we will fire anyone who is caught trading that tulip bulb fraud"...


TheDude1224 BaBaBouy Thu, 10/12/2017 - 10:59 Permalink

Can we short the banks yet, and if so, how do we collect? This is the dumbest thing I've seen yet, and that is saying something about these big banks. Let's transfer all of the bank's debt to a pyramid fraud to collect a few dollars before the whole thing collapses. Seems fool proof (/sarc)

In reply to by BaBaBouy

covfefe MICdotard CatsPaw Thu, 10/12/2017 - 09:45 Permalink

That article around here the other day about JPM desk traders bragging about making a killing is the bars the other day comes to mind. (I can't remember if it was the article, or just anecdotes that came out in the comment section). Evidence is building that JPM is using massive leverage, both with buying & selling, & with jawboning, to manipulate the shit out of BTC as if it were a pink sheet stock. This comment by Dimon, under that pretense, would sure be a 'sell the rip' indicator.

In reply to by CatsPaw

syzygysus Thu, 10/12/2017 - 09:16 Permalink

well at least the tulip bulb 'fraud' actually had tulips backing it. what about fractional reserve banking?   full faith and credit? what about bitcoin?  distributed ledger and ?

Son of Captain Nemo Thu, 10/12/2017 - 09:18 Permalink

And why wouldn't he?... Jamie already has mined many thousands of "Buttcoins" pre and post this announcement!


dasein211 Thu, 10/12/2017 - 09:19 Permalink

They do see their influence waning. Anyone with half a brain knows banks will be obsolete in 10 years. And you’ll be able to hold and buy stocks and bonds directly once again. No bastard prop desk fees or fund fees.

RedDwarf samsara Thu, 10/12/2017 - 12:43 Permalink

Sure, but bitcoin is decentralized.  Trying to regulate it would be like trying to regulate the wind currents.  The most they can do is partially regulate the bridge between fiat and crypto.So when they talk about regulating it, all they reveal is that they don't understand what bitcoin really is.

In reply to by samsara