Abstract

This case discusses about the managerial and leadership qualities of Jamie Dimon (Dimon), CEO of US-based banking major, JPMorgan Chase & Co. (JPMorgan Chase). Dimon was credited in the financial services industry for turning around several beleaguered companies including Baltimore-based consumer lending company, Commercial Credit Corp., Chicago-based retail banking and credit card major Bank One Corporation (Bank One). He was also accredited with steering JPMorgan Chase through turbulent times in the financial services industry. Analysts attributed Dimon for his inspirational leadership style and his comprehensive turnaround plan that led to the spectacular turnaround of JPMorgan Chase. Moreover, his decision to exit the then booming subprime mortgages business that helped JPMorgan Chase trudge through the financial downturn, while its competitors like Merrill Lynch Co. & Inc., UBS AG, and Goldman Sachs & Co. suffered damages due to the credit crunch, also caught the attention of the analysts. Sensing an opportunity in the prevailing adversity, Dimon went ahead with JPMorgan Chase’s acquisition of Bear Stearns Companies Inc. (Bear Stearns), in March 2008. While a few analysts felt that it was logical for Dimon to acquire Bear Stearns since it would enhance JPMorgan’s existing business portfolio, others felt that his decision could prove expensive if the US economy weakened further.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues and challenges in turning around a company. Evaluate the strategies adopted by Dimon in turning around Bank One and JPMorgan Chase. Understand how Dimon steered JPMorgan Chase through turbulent times in the financial services industr

Keywords

Leadership, Management style, Turnaround strategy, Financial services industry, Acquisition, subprime mortgage crisis, economic slowdown, restructuring, investment banking, housing mortgage market, Merger, proprietary trading, consumer banking, Commercial banking, Retail financial services, financial services industry, JPMorgan Chase, Bank One, Bear Stearns