JPMorgan Chase investors have Jamie Dimon’s “ruthless brilliance” to thank for the $6 uptick in share price since last Friday, Cramer said. The CEO swooped in to buy Bear Stearns at a massive discount while at the same time pressuring the Federal Reserve to guarantee the riskiest parts of the failing bank’s business. In the end, Dimon paid $236 million for what Wall Street expects will be an $18 billion windfall for JPMorgan.
The cunning move earned Dimon Cramer’s “Henry Potter Prize” for take-no-prisoners banking. Viewers might remember Potter as the villain in It’s a Wonderful Life.
But JPMorgan got itself more than just a incredible bargain. The bank now has Bear’s prime brokerage and clearing businesses, as well as the commodities and energy trading businesses, asset management business and the distressed mortgage operations. Sure, in the end that translates into more money. And Cramer said that should come in the form of earnings beats, quarter after quarter, for the foreseeable future.
It’s no surprise then that Cramer called JPMorgan Chase a buy. Watch the video for even more on why investors shouldn’t pass up the chance to own what might be the best bank in the business.
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