One Angry Investor
Dear Mr. Dimon:
I am one of your many investors. I own JPMorgan Chase stock (JPM). I own preferred stock in your company too. And as a taxpaying citizen of these United States a big chunk of that TARP money came out of my wallet.
What the hell are you doing with my money?
I just read an article in the New York Times today that says you, and another bank, foreclosed on one of Phoenix's oldest family own builders...and the guy had never been late on a payment!
That's right. NEVER LATE ON A PAYMENT!
"Dave Brown, a builder in Tempe, Ariz., had never missed an interest payment, but his bank shut down his projects anyway.
So he was confounded a few months back when one of his banks, spooked by the decline in his company’s revenue, suddenly demanded millions of dollars in additional collateral to continue carrying loans on his projects.
He was unable to come up with the money, and in October, JPMorgan Chase foreclosed on five of his developments. Shortly thereafter, Brown Family Communities, 33 years in the business, decided to shut its doors.
“They treated me like a deadbeat who missed his car payment,” said an embittered Mr. Brown, 76. “They wanted their money now.”
Jamie, if you'd like, you can read the rest of the article here...
Let me be perfectly clear. I didn't cut you, and the rest of your friends, a $25 billion check so that you could stash it under the mattress.
Mr. Brown's employees are now all out of work. How exactly do you expect us to get our economy moving if nobody has a job?
Look, I know you guys are all a little spooked right now. The fact is you levered up further than you should have. But we're retreating in to the stone ages now.
And don't even get me started on how dumb it is for banks to refuse to re-subordinate the home equity lines of thousands of borrowers who want to take advantage of these historic low interest rates. More on that tomorrow.
In short, it's a new day in America. You supported the new President. And he's just asked for your help. He's asked for all of us to help. So sack up and start doing some business for crying out loud!
Sincerely,
Your Friend Paul
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