JP Morgan chief said he would fire any employee that traded Bitcoins

Ikaba Koyi WebFG News | 13 Sep, 2017 13:40 | | |

jamie dimon ceo chairman jpmorgan jp morgan chase
  • 99.03
  • 0.02%0.02
  • Max: 99.55
  • Min: 98.96
  • Volume: 3,744,961
  • MM 200 : n/a
17:00 21/11/17
  • 23,607.89
  • 0.76%177.56
  • Max: 22,399.33
  • Min: 22,314.68
  • Volume: 0
  • MM 200 : n/a
17:00 21/11/17
  • 2,599.30
  • 0.79%20.45
  • Max: 2,600.11
  • Min: 2,589.17
  • Volume: 0
  • MM 200 : n/a
17:00 21/11/17
  • 1,145.18
  • 0.87%9.83
  • Max: 1,145.72
  • Min: 1,139.45
  • Volume: 0
  • MM 200 : n/a
17:00 21/11/17

JPMorgan chief, Jamie Dimon, said he would fire any JP Morgan trader who traded Bitcoins because it's against the lender's rules and because it shows they are stupid; furthermore, governments will eventually clamp down on them.

"[I would] fire them in a second. For two reasons: It's against our rules, and they're stupid. And both are dangerous," Dimon said.

"[Bitcoins are] a fraud" and "worse than tullips", he told an investor conference in New York on Tuesday, according to Bloomberg.

The banker was refering to the so-called 'Tulipmania' that gripped 17th century Holland after the first tullips were introduced, which initially saw the price of tullip bulbs rise to as much as ten times a skilled craftsman's annual income, before they crashed back to earth.

Bitcoin prices had run-up more than four-fold year-to-date, as speculators bet that the crypto-currency will continue gaining in value, either because it becomes more widely-accepted as a means for transaction or simply in the hope that they will be able to 'cash-in' before they crash.

Nonetheless, in the background the basic building block behind crypto-currencies, know as 'blockchain' technology, had led various top investment banks to get a move on developing their own versions in the hope that it will speed-up transactions, lower costs and that it is safer from cyber-attacks than other technologies then in use.

Bitcoin slipped as much as 7.55% following Dimon's remarks, and according to Coindesk was trading at $3,834.98 by 13:33 BST.

One of the few arguments in Bitcoin's favour, Dimon said, was that: "If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars [...] So there may be a market for that, but it'd be a limited market."

"Someone's going to get killed and then the government's going to come down. You just saw in China, governments like to control their money supply."

More news

16:52 Investec cuts water company price target due to nationalisation threat

United Utilities could be forced to slash its dividend from 2020 due to new regulation, warned Investec, leading it to downgrade its rating on the water company, and cut target prices across the sector.

16:29 Robert Mugabe resigns as President of Zimbabwe

According to the speaker of Zimbabwe's parliament, President Mugabe has handed in his written letter of resignation, putting a halt to impeachment hearings.

16:19 Premier Oil upside hinges on de-risking assets, confirming reserve upside, Barclays says

Analysts at Barclays downgraded their recommendation on shares of Premier Oil, telling clients that the stock's potential now rests on management's ability to de-risk the company's pre-development assets and to confirm the upside for the company's reserves.

15:56 GYG pushes expectations into next year after job delays

Superyacht painting, supply and maintenance company GYG has experienced a number of small delays on the start dates of some refit contracts, it announced in a trading update on Tuesday, adding that while work on those contracts has now started, a greater portion of the work would now be undertaken in the first quarter of 2018.

15:54 FTSE 250 movers: SIG rallies after update; Aggreko runs out of power

London's FTSE 250 was up 0.4% to 19,950.98 in afternoon trade on Tuesday as investors looked ahead to the Autumn Budget the following day.

15:51 XLMedia lifts earnings expectations amid strong trading

XLMedia has continued to trade strongly since the half year, it reported in a trading update on Tuesday, and now expects adjusted EBITDA for the year to 31 December to be “materially ahead” of expectations.

15:41 FTSE 100 movers: EasyJet flies higher despite falling profits; Mediclinic hit by downgrade

The FTSE 100 was trading 0.38% higher on Tuesday afternoon ahead of Philip Hammond’s Budget speech on Wednesday.

15:35 Sports Direct secures new, increased loan facility

Retailer Sports Direct said on Tuesday that it has entered into a new revolving credit facility which replaces its existing facility and is valid for four years, with an option to extend by a year.

15:30 CML Microsystems's profits on the rise

Semiconductor manufacturer CML Microsystems saw pre-tax profits rise 19% in the six months leading to 30 September, leading the group to a maiden interim dividend of 2.0p per ordinary share.

15:28 New acquisitions boost profits at Custodian

Real estate investment trust Custodian saw a 4.2% increase in its net asset value (NAV) over the six months leading to 30 September, as new acquisitions boosted the value of its portfolio to £474.3m.