In general I agree 100% with what @mattyglesias says here, but in the specific case of Jamie Dimon I feel the more straightforward lesson is just that investment banking CEOs shouldn't make dickish comments about major clients.
https://twitter.com/mattyglesias/status/1463497506965368833
This is not something they generally do! Bank CEOs are not famed for their quotable candour about their major clients!
Jamie Dimon 12 months ago might have said, "We were both founded by John Pierpont Morgan, but I think my compant will outlive General Electric."
He'd have been very right if he said it! But he could have expected to lose a lot of business with one of JPMorgan's biggest clients.
He'd have been very right if he said it! But he could have expected to lose a lot of business with one of JPMorgan's biggest clients.
The endless fruitless reorganizations of sclerotic state-owned enterprises in China and building up of new state-backed companies represents a huge market in which JPMorgan has impressive expertise, if it can just build the relationships.
Are the party bosses who ultimately run these companies going to pick JPMorgan over a Chinese rival to handle their next big steel merger?
Not if they're going to have to answer questions from their political bosses about why they chose the "fall of the Communist Party" bank!
Not if they're going to have to answer questions from their political bosses about why they chose the "fall of the Communist Party" bank!
The quality of the service that you receive from one investment bank vs. another isn't all that measurable in terms of dollars and cents.
That's why investment banking is a relationships business where executives show this elaborate politesse in talking about their clients.
That's why investment banking is a relationships business where executives show this elaborate politesse in talking about their clients.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
