Leadership 7th Edition by Andrew DuBrin, Ann Fisher, Andrew DuBrin

Exercise 3

James (Jamie) Dimon is chair and chief executive of J. P. Morgan Chase Co., the biggest bank in the United States. For example, it is the biggest credit-card issuer in the country, and it is also number one in auto loans. Dimon insists that no financial institution is too big to fail, not even J. P. Morgan Chase.
One of Dimon's most dramatic accomplishments was to cooperate with the U.S. government in agreeing to purchase Bears Stearns Company in 2008 when the latter was close to collapse. The government was concerned that if Bears Stearns declared bankruptcy, negative ripple effects would be felt throughout the industry. J. P. Morgan Chase similarly rescued Washington Mutual.
Dimon is credited with having had the wisdom and long-range point of view to prevent his bankers from succumbing to the extreme greed that made many bankers rich but destroyed their firms and reduced the net worth of so many investors. Among Dimon's initiatives was to make sure his bank had enough capital on hand to survive an emergency. He also avoided risky loans such as adjustable rate mortgages (ARMs), and invested lightly in packages of mortgage securities known as collateralized debt obligations (C.D.O.'s)
Dimon favors the strategy of a large bank providing for one-stop shopping. He argues that consumers who want credit cards also need home mortgages, and small business that needs loans may also want the services of an investment banker. According to Dimon, "Economies of scale are a good thing. If we didn't have them, we'd still be living in tents and eating buffalo."
At Dimon's admission, J. P. Morgan Chase did make some errors, but he saw enough trouble brewing to avoid the catastrophes of investment banks such as Lehman Brothers. J. P. Morgan Chase encountered some losses in credit cards and home mortgages. Dimon is in favor of some bank regulations but not others. Among the practices Dimon favors for regulatory reform are the mortgage business, better control over investments called derivatives, and fees for overdrafts on checking accounts. However, he is opposed to creating "a weed of bureaucracy that could wind around our ankles and necks," thereby interfering with the entrepreneurial spirit. Dimon is particularly opposed to the Consumer Financial Protection Agency, which would allow states to introduce stricter regulations. To help prevent what he considers to be over-regulation, Dimon visits Washington, D.C., to meet with members of both parties to plead his case.
In defending interest-rate increase on credit cards, Dimon argues that all businesses are selective about what merits a charge. For example, restaurants give you the table cloth and silverware for free but charge a lot for the food. Credit-card companies provide the service of convenience for free, but must then charge interest to pay their expenses, which include absorbing the loss on people who do not pay back their loans.
In what way might Dimon acting as a lobbyist be part of strategic thinking?