JP Morgan Chase & Company (NYSE JPM) held its annual shareholder meeting with Jamie Dimon, chief executive officer holding court.

Among his jabs against the Administration he complained that the rules against hiring foreigners was a "complete and utter disgrace." We might ask Mr. Dimon if he plans to hire another Chinese mathematician such as David X Li, whom JP Morgan Chase hired in 2000. Mr. Li developed a formula that created a single number from which traders bet billions of dollars in the past decade in derivatives which eventually brought the country to its knees when the housing bubble burst. This may help to explain why JP Morgan Chase has $87.7 trillion of derivatives "off the books." We might ask Mr Dimon to disclose the exact position in derivatives that he holds "off the books." Wouldn't that make fascinating reading?

Today looked like the traditional broke American spender of the past. Lower income, increased spending. We also saw waves of profit taking ahead of the weekend as the last two weeks have been some of the best moves seen in years in years. Here were today's unofficial closing levels:

Dow 7,776.18 -148.38 (-1.87%)
S&P 500 815.94 -16.92 (-2.03%)
Nasdaq 1,545.20 -41.80 (-2.63%)

Top Upgrades & Downgrades
52-Week Lows

Citigroup Inc, (NYSE C), Bank of America Corp. (NYSE BAC), and JPMorgan Chase & Co. (NYSE JPM) are the crybabies of Wall Street. They are complaining vigorously to Congress about the tax on their bonuses.

Here's a sample of their complaints: Bank of America's Kenneth Lewis said the tax is "unfair" in a memo to his employees. Citigroup's Vikram Pandit said his bank is "working in every appropriate way with policymakers." Jamie Dimon of JPMorgan held a conference call with executives and said that he is working with lawmakers.

Today ended up on an unofficial closing bell basis (official DJIA level may change as late as 4:30), but that was not the case all day and the "win" felt more mixed than like another consecutive rally.

But a win is a win no matter how sloppy it gets. The US Deficit has reached a record $765 billion in just five months. And here are today's unofficial closing bell levels:

Dow 6,930.40 +3.91 (0.06%)
S&P 500 721.36 +1.76 (0.24%)
Nasdaq 1,371.64 +13.36 (0.98%)

Top Analyst Upgrades
Top Analyst Downgrades
52-Week Lows

Following a meeting with CEO Jamie Dimon on Feb. 6, Citigroup analyst Keith Horowitz believes that JPMorgan Chase & Co. (NYSE: JPM) could be among the first banks to repay its indebtedness under the government's Troubled Asset Relief Program (TARP).

"Clearly there is a risk of future government interference, which is why we believe management would like to get out," noted Horowitz. However, while Dimon thinks banking industry returns will be compressed during the intermediate term due to the government's involvement, he doesn't see any significant changes to JPMorgan's long-term outlook.

Yesterday, business reporter Charlie Gasparino wrote in The Daily Beast that JP Morgan (NYSE: JPM) and its CEO Jamie Dimon, would be the next big financial institution for fall apart. He wrote, "But Dimon is feeling that heat, nonetheless, from analysts, who believe his firm will post a loss this quarter, the first since he became CEO."

Well, maybe so, but throwing stones at the people who have done well in an industry that has not is easy, perhaps too easy. If JP Morgan does lose money, it will join a long line of other firms that have done so. If its loss is modest, it will still be better off than most if not all of its peers.

Banks may be the most heavily followed companies on Wall Street. Analysts and the press crawl over the PR and financial reports, looking for bad news. That means the market should be relatively efficient at putting values on them, especially after two years of humiliation in which they got those values wrong.

If the Street is right, JPM still has a brighter future than rivals Citigroup (NYSE: C) and Bank of America (NYSE: BAC). Over the last six months, JPM shares declined about 10%. BAC is down almost 40% and Citi is off almost 60%.

It may be a little early to write that JPM obit.

Douglas A. McIntyre is an editor at 247wallst.com.

Wonder what happened to the hard earned money you paid in taxes? I can't account for all of it but $540 billion that went to six financial institutions is being used, in part, to operate 27 corporate jets. I may be the only one who feels this way, but I don't think the survival of the global economy depends on using taxpayer money to pay for financial executives to fly on their own corporate jets.

Here are the six financial institutions with the amount of taxpayer money they received and the number of corporate jets they're still flying:

• American International Group Inc (NYSE: AIG). $150 billion, seven corporate jets
• Citigroup Inc. (NYSE: C). $330 billion, four jets. (The $330 billion includes Citi's initial $25 billion in TARP money plus its more recent $305 billion in loan guarantees.)
• Wells Fargo & Co. (NYSE: WFC). $25 billion, one jet
• Bank of America (NYSE: BAC). $25 billion, nine jets -- its CEO Ken Lewis used $127,643 worth of its corporate jets
• JPMorgan Chase & Co. (NYSE: JPM) . $25 billion, four jets -- its CEO Jamie Dimon's personal use of its corporate aircraft totaled $211,182 in 2007
• Morgan Stanley (NYSE: MS). $10 billion, two jets -- its CEO John Mack's personal use of its corporate aircraft totaled $358,882 in 2007

This post is part of our feature on Money Winners of 2008. See all 20.

This past year has been a pretty rough one for CEOs in general. The stock market has tanked since October of last year, dragging down strong companies' share prices to some extent and weak companies' even further. It has been even worse for most financial executives, who have been ousted as their stocks fall to roughly zero and their company goes bankrupt or is taken over by a stronger institution. While many of these CEOs have golden parachutes that open upon their dismissal, much of their compensation is in the form of the company's stock and when that value dwindles, they feel the pain as well. One of our other 2008 Money Winners, Alan Fishman, who walked away with more than $11 million for three weeks work at Washington Mutual, had 600K shares of WM that he saw evaporate.

James "Jamie" Dimon, CEO and chairman of JPMorgan Chase (NYSE: JPM), has not had this kind of trouble over the past year, which places him squarely in the minority among his peers and makes him a money winner. Strictly speaking, Mr. Dimon raked in a salary for this year of "just" $1 million. His bonus allows for an additional $14.5 million, and the way things have been going for JPM, I'd wager a hefty portion of my savings that he gets the full amount. Plus on top of that, he has exercised options worth about $40.1 million this year, bringing the grand total compensation to $55.6 million.

JPMorgan Chase & Co. (NYSE: JPM) Chief Executive Jamie Dimon is the new king of Wall Street whose power rivals his company's namesake John Pierpont Morgan.

Over the past year, Dimon managed to steer JPMorgan away from the subprime credit crisis while managing to keep his company's stock from cratering like his competitors'. First, he absorbed Bear Stearns after it went out of business. Now, Dimon has managed to pick up Washington Mutual Inc. (NYSE: WM) -- the good parts of it anyway -- for $1.9 billion. The deal is accretive in 2009.

Dimon is proving to be Wall Street's shrewdest manager. He did not get to be so successful by being a teddy bear. Indeed, reports abound about his abrasive personality. But unlike other Wall Street CEOs, Dimon knows his job is to work for the shareholders. Dimon's zeal for cost-cutting knows no bounds. He got rid of expensive technology outsourcing contracts, figuring the company could do the work cheaper itself.

DealBook reports that JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon let out some bad news on JPMorgan's conference call today. Despite beating estimates, DealBook reported that JP Morgan's highest quality, so-called Prime mortgages, were, as Dimon said, "terrible, and we're sorry. We can say it eight times. It looks terrible."

Prime mortgages are not supposed to behave like subprime ones. But disappointment seems to be the big theme with the mortgage industry. Prime mortgages barely defaulted at all in the second quarter of 2007 -- JPMorgan wrote off 0.05% of them a year ago -- taking a $4 million charge. But in the same quarter of 2008, JPMorgan wrote off 0.91% -- and charged off $104 million.

And Dimon expects those Prime losses to triple -- to $300 million. If there's any good news, that $300 million is a mere 15% of the net income it earned this quarter. Still, it suggests the depth of the economic problems that lie ahead.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Bloomberg News reports that Lehman Brothers Holdings (NYSE: LEH) wants to sell $4 billion in equity. But it already raised $6 billion so why does it need more? It should be no surprise -- but thanks to a chorus of statements by financial leaders that "the worst is over" -- including Lehman's CEO Richard Fuld, Jamie Dimon, Hank Paulson, and Barton Biggs some are surprised that there are still problems.

Since the crisis began -- last August when the Fed began cutting rates from 5.25% to 2% -- banks have been trying to reduce their ratio of debt to equity below the hugely risky 32:1. But it's hard when they hold $500 billion worth of Level 3 assets -- which don't trade and therefore have no objectively set market value. To maintain or improve their capital ratios, banks have been writing down the value of the securities on their books -- $276 billion worth so far -- and simultaneously raising capital. Citigroup (NYSE: C) has raised the most -- $44 billion.

S&P downgraded Lehman, Morgan Stanley (NYSE: MS) and Merrill Lynch (NYSE: MER) saying they may disclose more write-downs for devalued assets. And hedge fund manager David Einhorn -- who's short Lehman -- got into a verbal debate with Lehman CFO Erin Callan arguing that Lehman had failed to disclose $6 billion worth of such Level 3 assets -- known as Collateralized Debt Obligations (CDOs) and it needed to raise capital. Today's announcement suggests that Einhorn was right.

Just because executives act like cheerleaders, it doesn't mean investors should take them at their word.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He owns Citigroup shares and has no financial interest in the other securities mentioned

When it comes to M&A, JP Morgan's (NYSE: JPM) Jamie Dimon is a pro. But, when he agreed to purchase the distressed Bear Stearns Cos. (NYSE: BSC), he had to reinvent the playbook. After all, he had only a couple days to evaluate the transaction.

Well, there's an excellent piece on this in the Wall Street Journal [a paid publication]. Basically, Dimon realized that speed was critical -- as well as real-time communications. In a complex deal, things can implode easily.

For example, JP Morgan quickly setup fiber cables to connect its information technology (IT) system with that of Bear Stearns. This was critical to allow for the unloading of portfolio assets, which helped to reduce the overall risk of the deal.

In fact, JP Morgan has an army of advisers and employees that are combing through many documents and computer files. No doubt, there are thousands of reports trying to track the progress. And so far, it looks like things are running smoothly.

JP Morgan (NYSE: JPM)'s CEO Jamie Dimon recently stated that the recession in the American economy is "just starting."

As if to confirm Dimon's pessimistic view, the news is that JP Morgan will soon fire 4,000 employees, according to a Bloomberg report. The layoffs are being driven by two major factors: the "slowing environment" (try 'snowballing recession') and the sudden acquisition of 14,000 Bear Stearns (NYSE: BSC) employees.

Amazingly, Dimon reports that JP Morgan had found positions for 6,000 of the Bear employees. That seems like an awful lot of people to take on during a slowdown, but Dimon stated that Morgan was keeping only the very best Bear people and hoping to take on some of the firm's business as well.

Unfortunately for (some of) the people at JP Morgan, about 2,000 of the layoffs at JPM will be of Morgan people who are being replaced by Bear people. The other 2,000 will be Morgan employees who won't be able to blame Bear for their problems. (I'm not sure which is worse.)

Dimon did offer two bits of more optimistic news. He said that the integration of bear Stearns and Morgan is going smoothly -- although it's hard to know how much you can trust that statement, since what else is he going to say about that? And he said that in his view, the credit crunch is 75% over.

So that may offer a hint of brighter days ahead -- for his bank at least. For the broader economy, though, it still looks like dark days ahead.

Last weekend JPMorgan Chase & Co. (NYSE: JPM) struck a deal to acquire -- or steal -- The Bear Stearns Companies (NYSE: BSC) for $2 a share (or $236 million) with the help of $30 billion in Fed financing. For the first time in my life, I was amazed to read in the New York Times that JPMorgan is now negotiating to raise its bid to $10 a share -- or $1.2 billion.

Why is this happening? Because some big shareholders plan to fight the deal. A third of Bear Stearns is owned by employees and British billionaire financier Joe Lewis, the firm's largest shareholder, who had invested $1.26 billion in Bear over the last year at an average price of about $104. JPMorgan needs 51% shareholder approval for the deal to go through. Last night, Bear's board was negotiating to sell JPMorgan 39.5% of the firm -- leaving it in a position to need only 10.5% of shareholder support to complete the transaction.

However, even that 39.5% deal may not go through as the Federal Reserve, which guaranteed $30 billion of Bear's most illiquid assets, is sensitive to criticism that it bailed out Bear. It's worried that allowing that deal will subject it to even more criticism. On Sunday JPMorgan was negotiating with the Fed to take some of the heat off the Fed by assuming at least the first $1 billion in losses on Bear assets before the $30 billion kicks in.

Today's breakingviews praises the idea about which I posted last week: a merger between Citigroup Inc. (NYSE: C) and JPMorgan Chase (NYSE: JPM). (DealBook has also picked this up.) I thought such a merger would be a good way to get JPMorgan CEO, Jamie Dimon, into Citigroup's CEO slot.

Here was my rationale: "Dimon -- who was Citi ex-CEO Sandy Weill's right hand man until Weill fired him for not giving his daughter a good enough job -- would probably enjoy running a combined Citi-JPMorgan Chase. After all, after he left Citi, he took over Bank One, which merged with JPMorgan Chase. And then Dimon took over from its former CEO, Bill Harrison. But a Citi-JPMorgan Chase combination could land Dimon in Sandy Weill's old slot once such a deal closed."

Breakingviews said: "J.P. Morgan boss Jamie Dimon is the top pick of many investors to succeed Mr. Prince. Not only did Mr. Dimon spend more than a decade carrying Sandy Weill's bags on the shopping spree that built Citigroup, he also has made the financial-supermarket model work for his current investors. Citi shares are down 31% in the past four years; J.P. Morgan shares are up 24%."