Jamie Dimon Optimistic About the Future of US Economy
Jamie Dimon CEO of JPMorgan Chase & Co. (NYSE:JPM) said he is optimistic about the global economy and the prospects for regulatory reform in the US under President Donald Trump.
“Japan is growing more than it has grown in 15 years, Europe is doing well all things considered, America is chugging along,” Mr. Dimon said in an exclusive interview last Saturday in Riyadh, where he attended a Saudi-US CEO Forum held to coincide with President Trump’s visit to the Kingdom.
“Even the IMF, which is always warning about stuff, is saying the world will grow faster than expected.”
Mr. Dimon said he’s comfortable about JPMorgan’s future given its positioning in emerging markets like Saudi Arabia, which is moving to privatize assets and gaining increased attention from international investment banks seeking advisory mandates. He also signaled that the bank is unlikely to boost its market share in some businesses even further after recent gains, and repeated his call for fine-tuning bank regulation in the US
“The Trump administration wants to deregulate certain things, and most of us in business think that regulations have been holding back growth,” Dimon said. “I’m still optimistic that you will have some regulatory reform. Even my Democratic friends understand that it makes sense to look at what was done, what can be done better, what can simplify the burden on businesses.”
To read about the bank’s most recent earnings, click here.
US Treasury Secretary Steven Mnuchin said that breaking up the biggest banks would be a “huge mistake,” just weeks after President Trump said his administration was reviewing whether a split made sense.
Some Trump Administration officials suggested they are in favor of Congress passing an updated version of the Depression era Glass-Steagall law that split commercial and investment banking. It was repealed in Y 1999.
“When they’re talking about Glass-Steagall, they’re saying, would you regulate smaller banks differently than the bigger banks, and that’s perfectly understandable,” Mr. Dimon said. “I don’t think it’s going to stop our ability to compete.”
In April, the bank beat analysts’ Q-1 profit estimates on better-than-expected trading results and lending margins. Trading revenue rose for a Q-4, the longest streak in at least 10 years, with a 17% advance in fixed income and a surprise increase for equities. “It will be hard to gain” further share in fixed income, Mr. Dimon said.
Mr. Dimon also said the bank may consider making acquisitions in financial technology or payment processing in the future, though he’s not considering any deals at the moment. “There is no area we can’t grow organically,” he said.