JPMorgan CEO Jamie Dimon On Friday, he dashed speculation about his working in the next US administration and raised the possibility of him leaving office. Wall Street giant to work on Joe Biden’s successor is “almost zero”.
Responding to a question on his long-rumored plan to swap Wall Street for Washington, D.C., the Queens native said: “I have always been an American patriot and my country means more to me than my company. Has been important. It is important that we get things right.”
Still, Dimon was quick to say investors shouldn’t prepare for his exit any time soon.
“I can almost guarantee I’ll keep doing this for a long time, unless the board kicks me out,” Dimon told analysts on a Friday conference call after the Wall Street giant announced better-than-expected third-quarter profit. Would have thrown it out.”
Shortly after Dimon’s comments, the price of a JPMorgan share rose 3% to $220.20 in morning trading on the New York Stock Exchange.
That could end months of speculation that the 68-year-old is ready to resign from his megabucks role at 383 Madison Avenue, whoever wins the race for America’s top job on Nov. 5.
Former President Donald Trump told Bloomberg in July that he was considering Dimon for the post of Treasury secretary.
But Trump walked back those comments just three weeks later and suggested they were hoaxes on Truth Social Was created by the “Radical Left”.
Demon also wrote A politically charged op-ed on August 2 to the Washington Post, the newspaper of choice for the D.C. elite, in which he demanded that the next president “must restore our confidence in America.”
“This is exactly the time when we need strong American leadership to unite us and reinforce the indispensable role our country plays in the security of the world,” he wrote in the left-leaning outlet.
But the veteran banker, who served for nearly two decades as CEO of JPMorgan, stopped short of endorsing Trump or his Democrat rival for the White House, Vice President Kamala Harris.
Harris named Joe Biden at the top of the Democrat ticket after the 81-year-old president dropped out amid concerns about his age and poor cognitive abilities.
According to regulatory filings, a government job would also represent a lucrative pay cut for the Wall Street titan, whose 2023 pay package included a base salary of $1.5 million and a performance bonus of $34.5 million.
In contrast, Joe Biden’s Brooklyn-born Treasury Secretary Janet Yellen takes home ‘just’ $246,400, According to an executive order signed by the outgoing commander-in-chief in December.
Names in the frame to replace the Wall Street titan when it eventually heads for the exit include JPMorgan’s head of asset wealth management Marie Erdoz. and Jennifer Piepszak, who is co-CEO of the company’s investment bank division.
Dimon’s comments on his potential departure from JPMorgan came as the bank announced that profit fell 2% to $12.90 billion for the three months ended Sept. 30.
But earnings per share of $4.37 beat expectations of $4.01, according to estimates compiled by the London Stock Exchange Group.
Revenue for the bank’s overall operations reached $5.7 billion, up 13% from Q3 2023.
Executives also pointed to an increase in investment banking revenue of $2.4 billion, which they said was 29% more than the same period last year.
Banks are building stockpiles – which act as a protection in case borrowers default on their loans – to normal levels as consumers have depleted savings built up during the pandemic.
JPMorgan said it had set aside $3.11 billion as protection for potential credit losses, while year-to-date reserves stood at $1.38 billion in case their clients defaulted on loans.
Dimon struck a cautious tone on the size of the economy, warning that global threats could still impact economic growth.
“We have been closely monitoring the geopolitical situation for some time and recent events show that the situation is becoming dangerous and worsening,” he said.
“There is significant human suffering and the consequences of these conditions could have far-reaching effects on short-term economic outcomes and, more importantly, on the course of history.”
This comes when Israel is ready to retaliate against Iran And its proxies after Tehran bombed the Jewish state with at least 180 ballistic missiles earlier this month.
A strike against Iran’s nuclear and oil facilities could send global energy prices soaring, meaning Americans would have to pay more for gas at the pump with just three weeks left until the presidential election.
Dimon said that “inflation is slowing and the U.S. economy remains resilient” but that “many important issues still remain, including large fiscal deficits, infrastructure needs, trade restructuring, and the remilitarization of the world.” “
“While we hope for the best, these events and the ongoing uncertainty demonstrate why we must be prepared for any environment,” he told Wall Street analysts on Friday.
