JP Morgan Chase & Co. (NYSE:JPM) earnings and the judgment of Jamie Dimon

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By Martin Foley on October 14, 2014 Economy

Jamie Dimon is back after having survived cancer.

After announcing that he had throat cancer in July and undergoing chemotherapy and radiation that lasted months, Dimon made his first official appearance last week. He will officially go back to work on Tuesday and will probably lead the show with his signature zealousness when JP Morgan Chase & Co. (NYSE:JPM) reports earnings of +0.95%.

Although existential beliefs do not often become part of our financial news observations, Dimon’s situation will decide what the public’s reaction is on United States’ most asset-rich bank’s third-quarter. This is what the situation looks like: FactSet believe $1.38 per share earnings should be coming in comparison to a 17 cents loss in 2013. This comprised set asides of $9 billion+ for approximately 10.4 billion risky legal concerns. Revenues of $23.9 billion are expected, a minor high from $23.1 billion

The basic truth is that, on Tuesday, the public will be thinking of Dimon’s recovery from cancer and this will have an effect on its views of what is known as contemporary finance’s major contentious stewardships.

What is left to determine though is if the public will sympathize with Dimon or lose trust in him. When Apple Inc. (NASDAQ:AAPL)hid Steve Jobs’ health issues, the public lost trust which only subsided after Jobs death and sympathy prevailed to balance the equation to one of worship after Jobs’ significant contributions were brought into focus.

The matter is complicated because Dimon is already viewed as a hero and a villain. Some time ago, Dimon was considered “Wall Street’s indispensable man” by the media after a “lovefest”.

Just before his bout with cancer, Dimon was hailed as immoral. The same publication that viewed him as “indispensable” in a January article used the phrase “amoral logic” and “Bernie Madof’s” name in the second paragraph. The remaining article accused him of taking in bonuses when his organization was being fined aplenty.

Now that the public sees Dimon differently, how will his cancer recovery be perceived? Fortunately for JP Morgan Chase & Co. (NYSE:JPM)’s shareholders, Dimon was never part of Apple’s protected overviews. He provided traders and the media, at this time, what seems to be a good deal which usually plays well.

It is believed that Bob Benmosche, who was given the task of bringing the prominent American International Group out of its financial recession, was unable to gather public endearment after his shocking comments in which he compared when he made a comparison between the outrage over AIG bonuses and the lynching of black people in the south of the country.

However, Benmosche kept the public abreast regarding his cancer diagnosis in such a way that he neither avoided nor exacerbated them, but rather was appreciated, when he eventually announced that he was retiring early because he had terminal cancer. Warren Buffettdivulged the news that he was suffering from prostate cancer that was forthright and actually made his legend grow. Similarly, Andy Grove, the man behind Intel was also upfront about his cancer diagnosis in a noteworthy public essay.

Dimon is not expected to do any of that, but he is being honest about his cancer. He will be seen in a new light though-more compassionately if only for just the length of this significant week-than he was when he announced he had cancer.

Right now, JP Morgan Chase & Co. (NYSE:JPM), with its innumerable fines, and consequently, Dimon, are coined as immoral. Nonetheless, Dimon does warrant some respect and by revealing his ailment upfront, he has it. This may warrant a positive stock, but do not forget, the stock market’s memory is short-lived.