Recent Bloomberg opinion piece on JPM and Goldman. Author David Reilly argues that, while Goldman has been getting most of the populist heat, JPM has flown under the radar. All the while, both firms are making record gains in S/T. JPM obliviously has more assets and a better PR image. Super slick Dimon or something else?
Article Excerpt:
Dec. 4 (Bloomberg) -- JPMorgan Chase & Co. lists lots of assets, ranging from loans to securities to cash, on its $2 trillion balance sheet. Not to be found is one that might be its most valuable -- Goldman Sachs Group Inc.
For JPMorgan, No. 1 in the too-big-to-fail bank club, Goldman has become the perfect lightning rod for populist outrage that might otherwise be directed at it. That has helped shield JPMorgan from questions about its own size, profits and payouts even as it reaps many of the same rewards as Goldman.
Not a week goes by, for example, without what seems like yet another big magazine article or blog blast directed at Goldman. The latest is an 8,000-plus-word piece in the January issue of Vanity Fair magazine.
Link:
http://www.bloomberg.com/apps/news?pid=20601039&s…
So i guess GS is going to be singing "Hate on me"?
JPM definitely better in the PR department. It's not hard to fly under the radar, though, when your competition keeps doing stupid shit and winding up with egg on their face.
"God's Work"? C'mon. They're making it too easy for JPM.
Public relations is a piece of piss in this environment. Here's what Goldman needs to do: shut the fuck up. Their image would improve drastically.
I think 'the media' as a whole is pretty similar to the women on The View--a bunch of tired old bitches with superficial knowledge on a host of topics who grab the 'low-hanging fruit.' Goldman makes it too easy for people who don't know what the fuck they're talking about to make GS seem like a bunch of cunts.
Best PR work so far? Definitely J.P. Morgan or Morgan Stanley. John Mack is retiring soon. I suspect he's going to run for some sort of office. I'd vote for him.
I think its a little bit more detailed than that. Mainstream USA has much more interaction with JP Morgan than it does Goldman Sachs - they know less about how GS makes its money since it is not a commercial bank. That, plus the differential in mean average compensation per employee makes GS seem much more nefarious. It's also a much easier target for conspiracy theories given the amount of GS employees who end up in high-government positions.
Well, in theory they are (decided to become / pretend for Fed purposes to be...). That's what angers many people.
You also have to add that, although Goldman has been very profitable in last quarters, most of its revenue has come from trading. Revenue from traditional investment banking activities have stagnated and revenues from commercial banking activities (which it SHOULD be doing, because it is supposed to be, in theory, a commercial bank) are zero. There's a forum dedicated to discussing this topic. Look it up if interested.
JPM, on the hand, has been doing pretty well in traditional IB activities as well as in almost all 'general banking', with the exception of its credit card business.
"Goldman is so loathed that it, not JPMorgan, probably would be first to face a firing squad if Congress bowed to calls to break up the biggest financial firms. "
That part is quite debatable - yeah GS is loathed most in the general public, but as we know by now a significant portion of decision making is based on connections. In public, it seems 95% of the pressure is on GS and the rest on JPM, but I'd bet my money it's much more balanced in private (political) circles.
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