Pressure on Jamie Dimon to Deliver 'Blowout Earnings': Bove
Unless JPMorgan Chase reports "blowout earnings" on Friday, CEO Jamie Dimon could be pushed out as chairman, especially following his failure of controls over mortgage foreclosures and the London Whale trading debacle, banking analyst Dick Bove said.
To Bove, the timing of this earnings report is critical, since JPMorgan will host its annual meeting on May 21.
"He can go in saying, 'Look at how much money we're making' and as a result of that, any thought of him being pushed out of the chairman's position will be eliminated," said Bove, an analyst with Rafferty Capital. "If JPMorgan does not have blowout earnings, then I think he goes into that meeting (with) a level of uncertainty about whether he holds onto the chairmanship position."
Last month, JPMorgan's board of directors said it "strongly endorses" keeping Dimon as both its chairman and CEO. The comment, contained in the opening pages of the company's proxy filing, is a more vigorous affirmation of the same view the panel took last year when it opposed an unsuccessful shareholder proposal to split the roles. (Read More: Jamie Dimon Warns of More Actions by Regulators)
The statement comes even after the board said in January that it had cut Dimon's annual compensation in half for 2012 to $11.5 million after the company lost $6.2 billion in the London derivatives trades.
Speaking on CNBC's "Futures Now," Bove added that JPMorgan's stock is "really interesting" at current levels.
"It should be bought because I really think if a banker needs a lot of good earnings in a given quarter, he can get them," Bove said.
— By CNBC's Drew Sandholm with Reuters
Like us on Facebook! Facebook.com/CNBCFuturesNow
Follow us on Twitter! @CNBCFuturesNow