Jamie Dimon speaks out about the possibility of taking a position in the US government

On By Yukito

JP Morgan CEO Jamie Dimon on Friday sharply criticized speculation that he might serve in the new US administration, saying there was “almost zero” chance he would leave the Wall Street giant and work for Joe Biden’s successor. .

Responding to a question about his long-rumored plans to trade Wall Street for Washington, the Queens native said: “I have always been a patriotic American and my country was more important to me than my company. It’s important that we get everything right.”

Nevertheless, Dimon was quick to add that investors should not prepare for its quick exit from the market.

“I almost guarantee I will be doing this for a long time unless management fires me,” Dimon told analysts on a conference call Friday after the Wall Street giant reported better-than-expected third-quarter earnings.

Jamie Dimon has long been rumored to be considering a top government job, but on Friday during a call with Wall Street analysts he appeared to rule out that option. Getty Images for the Atlantic

Shortly after Dimon’s comments, JP Morgan’s share price rose 3% to $220.20 in morning trading on the New York Stock Exchange.

It could end months of speculation that the 68-year-old would step down from his megabucks role at 383 Madison Avenue to serve whoever wins the Nov. 5 race for America’s top job.

Former President Donald Trump told Bloomberg in July that he was considering Dimon for Treasury secretary.

But just three weeks later, Trump walked back those comments, suggesting on Truth Social that the rumor was made up by the “radical left.”

Dimon also wrote a politically charged op-ed on Aug. 2 for the Washington Post, the newspaper favored by D.C. elites, in which he demanded that the next president “restore our faith in America.”

“This is precisely the time when strong American leadership is needed to unite us and strengthen the irreplaceable role our country plays in world security,” he wrote in the left-wing daily.

But the veteran banker, who was J.P. Morgan’s CEO for nearly two decades, refrained from endorsing both Trump and his Democratic rival in the White House, Vice President Kamala Harris.

Harris replaced Joe Biden at the top of the Democratic field after the 81-year-old president withdrew from the election due to concerns about his age and poor cognitive abilities.

The government position would also mean a steep 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, according to regulatory filings.

By contrast, Joe Biden’s Brooklyn-born Treasury Secretary Janet Yellen receives “only” $246,400, according to an executive order signed by the outgoing commander in chief in December.

Among those expected to replace the Wall Street titan when he finally decides to leave are Mary Erdoes, head of J.P. Morgan’s asset management division, and Jennifer Piepszak, co-head of the firm’s investment banking division.

Former President Donald Trump said in July that Jamie Dimon was one of his top candidates for Treasury secretary – but he backtracked on those comments three weeks later. AP

Dimon’s comments about his possible departure from J.P. Morgan came after the bank announced that profits fell 2% to $12.90 billion in the three months ended Sept. 30.

However, earnings per share of $4.37 exceeded expectations of $4.01, according to London Stock Exchange Group estimates.

Revenue from all bank operations reached $5.7 billion, an increase of 13% compared to the third quarter of 2023.

Executives also highlighted increased investment banking revenues of $2.4 billion, up 29% from the same period last year.

Banks are building up inventories – which provide protection in the event that borrowers default on their loans – to typical levels as consumers exhaust savings built up during the pandemic.

JP Morgan also said it had set aside $3.11 billion to protect against possible loan losses, compared to a $1.38 billion year-over-year reserve in case customers defaulted on loans.

Dimon cautiously assessed the shape of the economy, warning that global threats could continue to upend economic growth.

“We have been closely monitoring the geopolitical situation for some time, and recent events show that conditions are treacherous and worsening,” he said.

Stepping away from the Wall Street gig would mean missing out on J.P. Morgan’s future swanky headquarters at 200 Park Avenue and the opportunity to do business in Washington, D.C., at the Treasury Department. AFP via Getty Images

“There is significant human suffering and the outcome of these situations could have far-reaching consequences both for short-term economic performance and, more importantly, for the course of history.”

The ruling comes as Israel looks to respond to Iran and its proxies after Tehran fired at least 180 ballistic missiles at the Jewish state earlier this month.

A strike against Iran’s nuclear and oil facilities could cause global energy prices to rise, meaning Americans will have to pay more for gas at the pump just three weeks before the presidential election.

Dimon added that “inflation is slowing and the U.S. economy remains resilient,” but “several key issues remain, including large budget deficits, infrastructure needs, trade restructuring and the re-militarization of the world.”

“While we hope for the best, these events and the uncertainty that exists demonstrate why we must be prepared for any conditions,” he told Wall Street analysts earlier on Friday.