This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

JPMorgan's Trillion-Dollar Man

One sign of what Lee faces came earlier this year, amid a high-stakes showdown between Chrysler bondholders and the Obama administration. As the automaker teetered on the brink of bankruptcy, Lee initially demanded JPMorgan and Chrysler's lenders be paid "not a penny less" than the $6.9 billion they were owed, according to The Wall Street Journal. They ended up settling for $2 billion, as Lee "butted heads" with Steven Rattner, Obama's chief auto industry adviser, the paper reported.

Lee whiffed on another important, albeit extremely difficult, assignment last year when government officials asked him to try to raise private money for American International Group (AIG - Get Report) ahead of its bailout in September.

Also last September, when a Fortune magazine cover story praised Jamie Dimon and his "Swat Team," for helping him weather the credit crisis, The Wall Street Journal noted Lee was not among the more than a dozen executives pictured, calling it, "perhaps the most conspicuous absence this week after that of North Korea's Dear Leader."

"Perhaps Mr. Lee's friends could dub him Jim Jong Il," the paper quipped.

One of Lee's private equity admirers says he raised an eyebrow at Lee's absence from the Fortune article, though he says Lee's skills as a client guy are clearly more valuable in a bull market. Lee has had to step aside somewhat as risk managers, Democratic power brokers and the like take an increasing share of the spotlight at JPMorgan, the source says.

Lee scored a recent victory, however, when JPMorgan, Bank of America (BAC - Get Report) and private equity firm J.C. Flowers & Co. backed out of a deal to buy Sallie Mae (SLM) in 2007, early in the credit crisis. The student lender sued those firms over their refusal to pay a $900 million breakup fee, but Lee convinced Sallie to drop the lawsuit in exchange for helping it refinance about $30 billion in debt, according to Dealmaker magazine.
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AIG $53.37 -1.20%
BAC $12.95 -2.26%
BX $26.47 0.46%
GS $156.47 -0.01%
GE $28.54 -2.19%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs