Jamie Dimon Whines About New Credit Card Rules Hurting His Bottom Line
Pic credit: LOLFed
What a cry baby. In last year's letter, Dimon whined that the company only made a paltry $6 billion in 2008 when they should have made more like $15 billion and would have were it not for that meddling financial crisis and what-have-you. Cry cry cry.
J.P. Morgan Chase cut consumer access to credit and canceled credit cards in response to legislation signed into law by President Obama last year, the bank's chief executive Jamie Dimon said. The credit card reform act, which went into effect in February, could cost the bank up to $750 million in annual profits, he added.Dimon is also feeling some bankster remorse for using the FDIC's guarantee program to issue some $40 billion in unsecured debt, claiming that JPM never needed it and shouldn't have touched it because of the stigma associated with bailed out banks.
Despite the losses, "we believe that many, but not all, of the changes made were completely appropriate," Dimon said in his annual letter to shareholders, which was released late Wednesday.
Dimon said enacting the bill in the middle of a recession reduced access to credit for some consumers. The act prevents credit card companies from raising interest rates arbitrarily and charging certain fees. It also mandates that all of a cardholder's payments be applied to the balance carrying the highest interest rate.
J.P. Morgan is expected to take a hit of $500 million to $750 million from the new rules, according to Dimon, who added that the bank will no longer offer cards to 15 percent of its customers because they pose too much of a risk in light of the regulations. The bank has reduced credit lines, canceled cards that had not been used for a long time, and substantially reduced offers for introductory rates and promotional balance transfers.
Cry. Me. a Fucking. River. You. Whiny. Asshat.