Too Big To Fail

Dimon was the chairman and chief executive officer of JP Morgan Chase at the time of the financial crisis. A third-generation banker, he attended Harvard Business School, where he “developed a reputation—as much for this arrogance as for his intelligence” (72). Dimon helped build Citigroup, but when he refused to promote his mentor’s daughter, he was eventually pushed out, and he ended up at JP Morgan. As the “credit crisis began to spread” in 2008, “Dimon showed himself to be infinitely more prudent than his competitors” (76). Under his leadership, JP Morgan “used less leverage to boost returns and didn’t engage in anywhere near the same amount of off-balance-sheet gimmickry” (76). As a result, JP Morgan stayed strong “while other banks began to stumble severely after the market for subprime mortgages imploded” (76).

Fuld was the CEO of Lehman Brothers, the fourth-largest firm on Wall Street, at the time of the financial crisis. Fuld had started at Lehman in a part-time summer position secured for him by his grandfather, and he found that he instantly understood investment banking. His early boss said that he was a “natural” and “didn’t let his emotions get the best of his judgment” (20). Over time, he “earned a reputation as a single-minded trader who took guff from no one” (22).