Welcome to the Daily 5 report for Tuesday, Oct. 14.
JPMorgan Chase CEO Jamie Dimon is one of Wall Street's most influential bankers, so the fact that the collapse of subprime auto lender Tricolor Holdings reached the top of his radar today illustrates the magnitude of this mess.
The failed lender's bankruptcy cost JPMorgan $170 million in its latest quarter.
"It is not our finest moment," Dimon said in this story from Bloomberg. "When something like that happens, you can assume that we scour every issue, every universe, everything about how it could be taking place to make sure it doesn't take place from here. You can never completely avoid these things, but the discipline is to look at it in cold light and go through every single little thing, which you can imagine we've already done."
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And there's more angst to come. "When you see one cockroach, there are probably more," Dimon said. "Everyone should be forewarned on this one."
Fortunately for JPMorgan Chase and Dimon, the other major bankruptcy plaguing the auto industry — the surprise failure of Trico and Fram parent company First Brands — won't impact the company in the same way. Still, Dimon said more cockroaches could emerge at First Brands, too.
"First Brands I'd put in the same category, and there are a couple other ones out that I've seen that I put in similar categories," he said. "But we always look at these things. We're not omnipotent — you know, we make mistakes too, so we'll see. There clearly was, in my opinion, fraud involved in a bunch of these things."
In other stories today, Richard Truett took a hard look at why General Motors is giving up on hydrogen fuel cells. It's a familiar story.
EVs have shown automakers that consumers want whatever fuels their vehicles to be as easy to find as gasoline, go in the tank just as fast and be about the same price, Truett wrote.
"Perhaps it is the massive struggle playing out now to build a reliable nationwide charging network for EVs that forced GM's hand," he wrote.
From Japan, Toyota said it plans to position its Century luxury line as the automaker's new top brand, even above Lexus, with a fire-orange coupe that could challenge the likes of Rolls-Royce.
That's it for today. If you want to view this story in your browser, click here.
— Philip Nussel, online editor
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