Jamie Dimon Recounts 1998 Firing From Citigroup

Jamie Dimon, the CEO of JPMorgan Chase, recently recounted the day he was fired from Citigroup on a podcast. The incident, which occurred in 1998, did not shake his self-confidence but rather presented a turning point in his career. Dimon was hosting a hundred potential candidates in his New York City flat when he was called into a meeting with Citigroup’s Sandy Weill and John Reed. The duo asked him to drive to the office, where they outlined structural changes to the team and ultimately asked Dimon to resign.

Reflecting on the day, Dimon remembered the conversation at first “didn’t make sense to me.” He explained that the changes they wanted to make, including putting someone else in charge of the global investment bank he was running, seemed illogical to him. The final blow came when they asked him to resign, a move he knew was pre-arranged as the board had voted and the press release was written.

Returning home, Dimon told his wife and three young daughters—aged 14, 12, and 10 at the time—that he had been fired. Their reactions were varied. The youngest asked if they would have to sleep on the streets, to which Dimon reassured her that they would be okay. The middle daughter, who was always concerned about college, asked if she could still go. The oldest, however, had a different concern: she asked if she could have her father's cell phone since he no longer needed it.

Despite the emotional turmoil, Dimon's flat filled with about 50 senior managers from the bank to mark his departure. He recalled the experience as being like his own wake. One of his daughters, looking up at a tall friend of his, asked who he was. The friend replied that he worked for her daddy, to which she responded, “Not anymore you don’t.” Dimon took this as a sign that he was okay, stating that it was his net worth, not his self-worth, that was involved.

After leaving Citigroup, Dimon, then in his 40s, sought his next challenge. He met with Amazon’s Jeff Bezos about taking the position of president at the tech giant but decided that a leap into retail was a “bridge too far.” He also met with bosses at Home Depot but did not proceed with the offer as it was too far out of his “habitat.”

An opportunity arose a few years later to lead struggling Bank One, based in Chicago. Dimon saw this as a chance and, with his family’s willingness to move, he took the position. He put half his money into Bank One stock, showing his commitment to the institution. Dimon wanted to express that, as an “out of town” New York implant, he was still in “100%, lock, stock and barrel.” He believed in making decisions that were right for the long-term health of the company, not for short-term gains.

This calculated move to buy $60 million worth of stock in the company he was about to lead helped launch his path to JPMorgan’s top job. Dimon’s story serves as a testament to his resilience and strategic thinking, turning a career setback into a significant opportunity.