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Good find!!
I really should pull my checking account from there...
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Although I am attempting not to reach premature conclusions, Bank One's response to the criminal activity of their own employee is so pathetic that if Bank One had branches in my area, I'd be inclined to organize picket lines and maybe a boycott.

I expect any day now to see a consumer-opinion web site created by some of the victims of this fraud scandal, and then see Bank One intervene with the web-site operator to shut it down - like NetBank and FirstUSA have done through heavy-handed legal threats against consumer protest web sites.

Worst of all: CEOs of companies like Bank One are gluttonously overpaid and do NOT practice the Harry Truman doctrine, "The Buck Stops Here". They don't accept responsibility for the actions of their organizations, it's always a "pass-the-buck" game of pushing responsibility for problems back down the chain of command, and using legalistic excuses to ultimately evade responsibility for their actions.
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Worst of all: CEOs of companies like Bank One are gluttonously overpaid and do NOT practice the Harry Truman doctrine, "The Buck Stops Here". They don't accept responsibility for the actions of their organizations, it's always a "pass-the-buck" game of pushing responsibility for problems back down the chain of command, and using legalistic excuses to ultimately evade responsibility for their actions.

I always enjoy reading SeattleNative's posts, which are usually very well thought out. I must say, however, that anyone who would write this knows absolutely nothing whatsoever about Jamie Dimon, Bank One's CEO. In the interests of fair disclosure, I am a Bank One employee. Let me tell you that Jamie is the kind of CEO that more organizations need. He accepts responsibility for everything in the organization. He holds managers accountable, and I am quite certain that the managers involved in this case will have to answer to Jamie. He is thoughtful, aggressive, and, unlike most CEOs of financial services firms, he truly cares about customer service. He believes in cutting buraucracy and red tape. I'm not saying that Bank One is perfect. We still have a long way to go. But significant improvements have been made in the two years that Jamie has been CEO.

As for Jamie being "gluttonously overpaid," I wonder if SeattleNative and the other Bank One bashers on the board are aware that for fiscal year 2000, because Bank One did not show a profit, Jamie forfeitted his bonus and asked other senior executives to do the same. He bought 2,000,000 shares of ONE with his own money, saying that corporate executives should have to "eat their own home cooking." In short, Jamie is a model CEO for a financial services firm.

All that being said, I still keep my checking account at FirstIB. Can't beat the interest rate and free bill pay!
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Since the media has exposed the hideous lack of concern for its customers on BankOne's, said customers are free to take their business elsewhere (like Merrill Lynch's). Gotta love a free market.

On the issue of exec comp, I think that responsible execs (Mr. Dimon among them) largely deserve their pay. The good ones hold a major portion of their net worth in the stock, put the bulk of their pay at risk, and have boards staffed with independent directors. This is the sort of thing I look for when I invest, and the few times I have overlooked this, I have been sorry. By far, my best performing investments have this type of management.

The CEO can't be expected to know about everything. However, the local managers who mishandled this ought to be taken out and shot.
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like NetBank and FirstUSA have done through heavy-handed legal threats against consumer protest web sites.

Isn't First USA owned by Bank One or vice versa? I thought that they were the product of a merger of the First Card folks and Bank One.

-- Mark
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Isn't First USA owned by Bank One or vice versa? I thought that they were the product of a merger of the First Card folks and Bank One.

First Card was owned by the old First National Bank of Chicago. First USA merged with Bank One in the mid 90s. First Chicago merged with Bank One in 1998.
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Jeff: My research into corporate governance in recent months has not included Bank One. The previous Bank One CEO was not particularly responsive to the public. My knowledge about Mr. Dimon's accomplishments remains very limited, so I will eat some crow and concede I overdid the rhetorical attacks against Mr. Dimon.

I still am appalled at the lack of timely disclosure by Bank One to its customers (including FORMER customers who no longer had business relationships with Bank One) to warn or assist them regarding the unauthorized criminal release of personally-identifiable credit and banking data.

What may be more frightening than Bank One's very inadequate response to protect their customers/former customers, is that this kind of unauthorized disclosure and criminal activity could potentially occur with other banks. The laws apparently do not require or even encourage banks to notify the victims of such unauthorized disclosure.
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Jeff,
I can only imagine what kind of co. wide emails Jamie sends out. This much seems to be true. What Jamie doesn't get one year, he'll more than make up for it the next. Have you looked at his compensation lately?

Yahoo has his "Value of in-the-money options" pegged at: $27,906,040
(which I don't even think counts the 6 million dollars worth of stock options he cashed in last year.)

These 2 snippits are from our own Chicago's "Crain's mag".

He was the 5th highest paid exec in Chitown last year.
These are all in millions.
Total compensation $21,537.3 Salary: $1,000.0 Bonus $3,000.0 Long term comp. $17,537.3

Turnaround pays off for Dimon
Posted on 03/04/2002 - A Web-only article from ChicagoBusiness.com
BANK ONE Corp. CEO Jamie Dimon's salary quadrupled to $4.3 million in 2001, a year during which the Chicago-based financial giant's net income rebounded to $2.6 billion from a year-earlier loss. Mr. Dimon, 45, received $1 million in salary, $3 million in bonuses and $332,292 in other compensation, according to a filing with the U.S. Securities and Exchange Commission. During 2000, BANK ONE paid Mr. Dimon $1.02 million in salary and other compensation. In addition ...

All in all, I agree that he's been very good for Bank One, but wouldn't you agree that is something wrong when society allow's an individual to be paid these outrageous amounts?

-upatnite2
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As an investor and as a consumer, I've become increasingly irritated by the excessive compensation paid to CEOs and senior management at many American corporations.

At a time when consumers are getting charged higher fees for routine services (i.e. "returned deposited check fee", "ATM surcharge", "foreign ATM fee", "account inactivity fee", or other malarkey), and when many companies' rank-and-file employees are being laid off to "cut the fat", senior management people are getting grotesquely overcompensated.

I will make a point of studying more on Bank One to verify whether their Board of Directors indeed is truly independent, and to learn more about Bank One's performance.
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As an investor, you should be thrilled that banks are successfully increasing profitable revenues (provided that you invested in banks). As a consumer, well, its a free market and you are welcome to take your business to the banks that offer you a better deal.

As far as executive compensation goes, I would think that as long as the corporate governance structures are strong and intact (not always the case), and execs are performing well, it is hard to begrudge them their earnings. Particularly in the case of pay-for-performance structures, I'd think that investors would be happy to pay CEO's richly because it would mean that investor's were doing well.

Now there are numerous cases where execs are egregiously over-paid (I have one in my portfolio and I'm looking to get out). Since these problems are out there, it pays to do some DD.
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As a consumer, well, its a free market and you are welcome to take your business to the banks that offer you a better deal.
I'm not so sure it's as easy as that.

A few years ago, First Chicago was an extremely large bank in it's
own right. After Bank One gobbled them up, Bank One became that
much larger, more powerful, and 1 less bank to do business with. There are 2 bills pending now (that looks like they won't pass from the last thing I read about them), that would allow Bank One to not be held to Illinois' mortgage laws, and would in fact allow Bank1 to charge larger fees and/or rates to late payments or bad accounts. I don't know the particulars, but I think they'll apply to other banks as well.

What this boils down to is, Mr. Dimon is great executive, and will
benefit Bank1's share holders. But as far as whether or not he is
good for consumers is a completely different matter. At this point,
I would have to say NO. CC rates are high, %'s for cash advances are much higher than they were a few years ago. Fees for the bank are high. % rates on checking accounts are non existant. What basically have consumers gained from these large massive banks? ATM's all over the place? Big deal. ATMs must be much cheaper than they were a few years ago.

-upatnite2




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