Tags: frank langone | jamie dimon | resign | vote

Langone 'Terrified' Dimon Would Resign After Vote

Monday, 13 May 2013 10:32 AM

Ken Langone, the billionaire founder of Home Depot Inc., said he’s “terrified” Jamie Dimon might resign from JPMorgan Chase & Co. if shareholders vote to separate the roles of chairman and chief executive officer.

“The exit will blow your mind,” Langone said in an interview with Betty Liu on Bloomberg Television.

“I am terrified” investors will sell shares, he said. Langone said he has “tens of millions of dollars” invested in New York-based JPMorgan.

Investors would risk shortening Dimon’s tenure if they appoint a separate chairman and their company’s stock may lose its “premium valuation,” Charles Peabody, an analyst at Portales Partners LLC, said last month in a note to clients.

Separately, JPMorgan shares would probably fall by about 10 percent if Dimon leaves the company, Mike Mayo, an analyst at CSLA Ltd., said in a research note to clients.

The lender’s market value would likely drop by about $20 billion if shareholders vote on May 21 to strip Dimon of his chairman role and he leaves as some analysts predict, Mayo said.

The stock would suffer because the New York-based bank has no obvious successor to Dimon, 57, who is top-ranked among large bank CEOs, Mayo said.

JPMorgan declined 0.2 percent to $48.85 at 10:42 a.m. in New York. The shares have gained 11 percent this year, compared with the 14 percent advance of the 24-company KBW Bank Index.

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Ken Langone, the billionaire founder of Home Depot Inc., said he’s “terrified” Jamie Dimon might resign from JPMorgan Chase & Co. if shareholders vote to separate the roles of chairman and chief executive officer.
frank langone,jamie dimon,resign,vote
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2013-32-13
Monday, 13 May 2013 10:32 AM
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