JPMorgan Chief Executive Jamie Dimon on Friday poured cold water on speculation that he would serve in the next U.S. administration, saying he will leave the Wall Street giant to take over as Joe Biden's successor. He claimed that the chances of him working there were “almost zero”.
In response to a question about the long-rumored plan to replace Wall Street with Washington, D.C., the Queens native said: It's important to get things right. ”
Nevertheless, Dimon was quick to add that investors shouldn't brace themselves for his exit anytime soon.
“Unless the board ousts me, I'm almost certain I'll be in this job for a long time,” Dimon said on a conference call Friday after the Wall Street giant announced better-than-expected third-quarter profits. told analysts.
Shortly after Dimon's comments, JPMorgan shares rose 3% to $220.20 in morning trading on the New York Stock Exchange.
This follows a months-long hiatus in which the 68-year-old plans to step down from his post at Megabucks, 383 Madison Avenue, to serve whoever ultimately wins the race for America's top job on Nov. 5. This may put an end to speculation.
Former President Donald Trump told Bloomberg in July that he was considering Dimon for the Treasury secretary position.
However, President Trump retracted those comments just three weeks later, suggesting on Truth Social that the rumors were made up by “radical leftists.”
Also written by Dimon editorials with political content; On August 2, he wrote an op-ed for the Washington Post, the newspaper of choice for Washington, D.C.'s elite, calling on the next president to “restore faith in America.”
“Now is the time when strong American leadership is needed to unite us and strengthen the essential role our country plays in global security,” he wrote in left-leaning media.
But the veteran banker, who has been CEO of JPMorgan for nearly 20 years, has not endorsed either Trump or his Democratic rival in the White House, Vice President Kamala Harris. Ta.
Harris became the top name on the Democratic ticket to replace Joe Biden after the 81-year-old president resigned over concerns about his age and declining cognitive ability.
The government job would be an eye-watering pay cut even for a Wall Street titan, but regulatory filings show the 2023 pay package will include a base salary of $1.5 million and a performance bonus of $34.5 million. It is said that there is
By contrast, Joe Biden's Brooklyn-born Treasury Secretary Janet Yellen received “only” $246,400. According to an executive order signed by the outgoing commander in chief in December.
JPMorgan's head of asset management, Mary Erdoes, and Jennifer Piepszak, co-chief executive officer of the company's investment banking division, are among the names on the list of successors when the Wall Street giant eventually heads out of business. It is.
Mr. Dimon's comments about his possible departure from JPMorgan came as the bank announced that its profit for the three months ended Sept. 30 fell 2% to $12.9 billion.
However, earnings per share came in at $4.37, beating expectations of $4.01, according to estimates compiled by the London Stock Exchange Group.
Revenue across the bank's operations reached $5.7 billion, an increase of 13% from the third quarter of 2023.
Executives also pointed to a $2.4 billion increase in investment banking revenue, which they said was a 29% increase from the same period last year.
As consumers burn through savings accumulated during the pandemic, banks are building up stockpiles to typical levels in case borrowers default on their loans.
JPMorgan also said it has set aside $3.11 billion as a safeguard against possible credit losses in case customers default on their loans (up $1.38 billion in reserves compared to the same period last year). ).
Mr. Dimon struck a cautious tone about the future of the economy, warning that global threats could still upend economic growth.
“We have been closely monitoring the geopolitical situation for some time, and recent events indicate that the situation is dangerous and worsening,” he said.
“There will be significant human costs, and the consequences of these situations can have far-reaching implications for both short-term economic outcomes and, more importantly, the course of history.”
This comes as Israel is poised to strike back against Iran and its proxies after Tehran fired at least 180 ballistic missiles into the Jewish state earlier this month.
Attacks on Iran's nuclear and oil facilities could push up global energy prices and mean Americans will have to pay more for gas at the pump, with three weeks until the presidential election.
Dimon said that while “inflation is slowing and the U.S. economy remains resilient,” there are “several key challenges, including large budget deficits, infrastructure demand, trade restructuring, and global remilitarization.” There are still issues,” he added.
“While we hope for the best outcome, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment,” he told Wall Street analysts early Friday. he said.
