By Nupur Anand
NEW YORK (Reuters) – JPMorgan Chase (NYSE:) CEO Jamie Dimon hailed U.S. management and financial energy in an annual letter to shareholders on Monday that invoked “liberty and justice for all.”
Dimon, who runs the most important U.S. financial institution, celebrated American exceptionalism in his yearly message, which is broadly learn by buyers. In it, he underscored the significance of the nation’s army may — and its help for Ukraine — alongside its financial power. Public coverage suggestions accounted for a couple of quarter of the doc, a bigger share than final 12 months.
“Even America, probably the most affluent nation on the planet with its huge assets, must focus its assets on the advanced and tough duties forward,” he wrote.
Dimon, who took the reins in 2006, is amongst a gaggle of economic CEOs whose names have been floated for senior financial roles in authorities. The Wall Avenue Journal final week reported that allies of former U.S. President Donald Trump was contemplating senior Wall Avenue executives, together with Dimon, for the function of Treasury secretary.
JPMorgan declined to touch upon the hypothesis, and has beforehand stated that Dimon has no plans to run for workplace.
Within the home enviornment, Dimon cited a widening wage hole that has led to “the fraying of the American dream,” and prompted some Individuals to really feel left behind whereas others change into extra rich. He really helpful bettering schooling and rising tax credit for low-income employees.
The billionaire CEO was awarded a 4% elevate to $36 million for 2023 after JPMorgan earned a report annual revenue.
On international coverage, Dimon advocated for the U.S. to signal extra commerce agreements and stated it ought to take a troublesome stance with China, whereas nonetheless staying engaged.
The CEO’s letter additionally features a reprinted column written by former U.S. Senator George McGovern in 1992, a number one Democratic liberal whose anti-Vietnam Battle stance value him the 1972 presidential race in opposition to Republican Richard Nixon.
The article, entitled “A Politician’s Dream Is a Businessman’s Nightmare,” discusses the challenges of operating a small enterprise and the function of presidency in encouraging financial development.
Elsewhere, Dimon reiterated his opposition to stricter financial institution capital guidelines proposed by U.S. regulators. The draft laws may make markets much less clear and damage shoppers by making loans dearer, Dimon wrote. He additionally referred to as for less complicated guidelines and higher collaboration between banks and regulators.
Federal Reserve Chairman Jerome Powell stated final month that regulators will make important modifications to the contentious plan.
Dimon additionally advocated for extra merger approvals at a time when lenders are going through elevated competitors from fintech corporations and personal credit score firms.
“Banks ought to be allowed to pursue their particular person methods, together with mergers and acquisitions, as they see match,” Dimon stated.
Banking consolidation has come into focus after three regional lenders failed final 12 months, spreading turmoil by the trade. JPMorgan purchased one of many collapsed banks, First Republic, final 12 months.
Individually, Dimon maintained his view that inflation may very well be extra persistent than markets anticipate, prompting rates of interest to remain increased.
“Regardless of the unsettling panorama, together with final 12 months’s regional financial institution turmoil, the U.S. economic system continues to be resilient, with shoppers nonetheless spending, and the markets at present anticipate a smooth touchdown,” he wrote.
Nonetheless, he cited U.S. authorities spending, quantitative tightening and wars in Ukraine and the Center East as probably disruptive elements.
“These important and considerably unprecedented forces trigger us to stay cautious,” Dimon wrote.
