As I wrote in this post in late October,
"What I believe has occurred at Chase is an initial reduction of discretionary and, then, core expenses by Dimon soon after his arrival at the bank. This temporarily swelled operating margins, as revenue growth crested against a lower expense base. As revenue growth has been affected by the cost-cutting, it has slowed.
It would take at least four years of consistently strong revenue growth at Chase, with corresponding NIAT growth, before I would believe that Dimon is capable of leading a financial services conglomerate to consistently superior performance, either fundamentally or technically."
Dimon has in no way yet proved he can grow Chase and deliver sustained, consistently superior total returns for his shareholders. To say he carried bags for Sandy Weill is no compliment, given the fate of Weill's spawn, Citigroup.
But, beyond Dimon and Chase, the chronic underperformance of the S&P500 Index by our nation's money center banks is widespread. As I wrote in that prior post,j
This piece was about the wackiest I think I've seen in the Journal in ages. Don't they have better uses for their space?