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*'''Insta-cred''': Javice has great hair and sparkly blue eyes? Young millennial? She Instagrams well? In the #metoo generation we would like to think JP Morgan executives were not swayed by this. | *'''Insta-cred''': Javice has great hair and sparkly blue eyes? Young millennial? She Instagrams well? In the #metoo generation we would like to think JP Morgan executives were not swayed by this. | ||
*'''Star quality''': Made it to the Forbes “30 under 30 list” — These days Forbes is basically a blogging platform, so make of that what you will. | *'''Star quality''': Made it to the Forbes “30 under 30 list” — These days Forbes is basically a blogging platform, so make of that what you will. | ||
*'''People’s Poet''': Her pre-acquisition puff pieces focus on her support for minority and lower-income students. Because women hold a disproportionate amount of student loan debt in this country, Frank is “not as masculine around money,” whatever that means. | |||
*'''Intermediaries''': There ''was'' an agent — the third party vendor — but it didn’t warrant as to the data, and it was only involved due to bogus privacy concerns. | *'''Intermediaries''': There ''was'' an agent — the third party vendor — but it didn’t warrant as to the data, and it was only involved due to bogus privacy concerns. | ||
*'''Privacy''': As a plausible excuse for not telling you something you need to know. | *'''Privacy''': As a plausible excuse for not telling you something you need to know. | ||
===Red flags=== | ===Red flags=== | ||
*None of the material indicates at any point how Frank was proposing to make actual money out of impoverished students. | |||
*'''Priors: form for regulatory bother''': Frank had some form for grandiosity on its website, having been ticked off previously for over-stating its connections with the Department of Education<ref>https://www.businessinsider.com/charlie-javice-frank-jpmorgan-settlement-department-education-2018-2023-1?</ref> and making misleading claims about COVID.<ref>https://www.ftc.gov/system/files/warning-letters/covid-19-letter_to_frank.pdf</ref> | *'''Priors: form for regulatory bother''': Frank had some form for grandiosity on its website, having been ticked off previously for over-stating its connections with the Department of Education<ref>https://www.businessinsider.com/charlie-javice-frank-jpmorgan-settlement-department-education-2018-2023-1?</ref> and making misleading claims about COVID.<ref>https://www.ftc.gov/system/files/warning-letters/covid-19-letter_to_frank.pdf</ref> | ||
===Seriously?=== | ===Seriously?=== | ||
But in the main, this comes down to poor policework by JP Morgan. They said it themselves: “The Fake Customer List had no value as diligence information. It did not tell JMPC anything about Frank, its business, or the students who supposedly started filling out FAFSAs”. That being the case, why did they go ahead with the acquisition? How did they come up with the USD125m valuation? | But in the main, this comes down to poor policework by JP Morgan. They said it themselves: “The Fake Customer List had no value as diligence information. It did not tell JMPC anything about Frank, its business, or the students who supposedly started filling out FAFSAs”. That being the case, why did they go ahead with the acquisition? How did they come up with the USD125m valuation? | ||
===Dimon Geezer=== | |||
“I’ll tell you the lessons learned here when this thing is out of litigation,” JP Morgan CEO Jamie Dimon said, on a conference call to discuss fourth-quarter 2022 earnings. | |||
While we wait, the [[JC]] has two learnings: One: test the quality of your target’s data ''before'' acquiring it, not four months afterwards; and two, if you have paid couple of hundred mill for a lemon because your corporate acquisition people were gulled by a 25 yo with great hair and an iffy Forbes profile, quietly fire them and ''move on''. For Pete’s sake don’t then ''[[Litigation|litigate]]'' about it to make it worse. | |||
{{sa}} | {{sa}} | ||
*[https://www.documentcloud.org/documents/23570243-frank_suit? JP Morgan Complaint] | *[https://www.documentcloud.org/documents/23570243-frank_suit? JP Morgan Complaint] | ||
{{ref}} | {{ref}} | ||