????Growth has been an issue as well. And it's not for not trying. In the past year, JPMorgan has added 216 new branches and 4,000 retail bankers and sales specialists. It has also expanded its corporate lending and investment bank. Nonetheless, JPMorgan's revenue has been dropping, not rising -- down 18% in the fourth quarter alone. And JPMorgan still maintains the largest derivatives books among the big banks. Tighter regulations and lower debt ratings for the banks will probably make that business less profitable. Mayo says JPMorgan's derivatives revenue could drop by $1 billion.
????But JPMorgan's biggest problem might be Dimon's own inflated image of his bank. Last year, Dimon called proposed international capital rules that would force his bank to hold more capital than some of his rivals as "anti-American." In fact, Dimon hasn't rushed to raise capital like other banks. And Dimon says he won't raise excess capital above new rules, as other banks have. JPMorgan now maintains a lower tangible capital ratio than Citigroup or Bank of America. And that appears to be fine with Dimon. His bank proved it was better at managing and protecting its capital. Yes, but that was three years ago. These days, JPMorgan looks like just another large bank to most investors, and not even the most loved one.
