Mr. Hussein Obama Secretly Worked for 6 Years to Halt the Growth of JP MorganChase
For about 6 years, former President Barack Hussein Obama secretly hobbled JPMorgan Chase & Co.(NYSE:JPM), the nation’s largest bank.
Now the chains are off, thanks to bank-friendly regulators in The Trump Administration.
In actions never before made public until no, Mr. Hussein Obama’s administration regulators prevented the bank from opening branches in new states as punishment for allegedly violating banking rules.
JPMorgan’s ambitious plan to expand nationally, announced earlier this year, was made possible by The Trump Administration’s rollback of those restraints, which date from Y 2012.
JPMorgan has paid $30-B in penalties, legal costs and related obligations since the Y 2008 financial crisis. And, privately, the US Office of the Comptroller of the Currency stopped JPMorgan from expanding into additional states while resolving compliance breakdowns as part of an unwritten regulatory policy.
The people with knowledge of the matter described the ban as 1 of the most extreme ways they exerted their control behind the scenes.
Janet Yellen, who served as Fed Chairwoman under President Barack Hussein Obama, announced the unprecedented punishment against Well Fargo &Company (NYSE:WFC) on her final day in office.
JPMorgan, the biggest US bank by assets, operated 5,130 branches in 23 states at the end of Y 2017.
With assurances from regulators under President Donald Trump, JPM planning to open 400 branches in as many as 20 new markets in the next five years, including plans to build in Boston, Philadelphia and Washington, D.C.
This is the 1st time the bank is opening branches in a new state in more than 10 years. The moves could translate into an additional $1.5-B of revenue a year by Y 2022, according to bank analysts.
“We are extremely excited to be expanding again, as smart regulatory policy and a competitive corporate tax system help us to deliver on our commitment to invest in our customers and communities,” CEO Jamie Dimon said on 12 October.
A JPMorgan spokesman, said the bank does not comment on supervisory issues.
“Opening new branches is a sustainable and long-term investment in the communities we serve,” he said. “Entering new markets will bring the full force of JPMorgan Chase’s business and philanthropic capabilities, create thousands of good-paying jobs, and allow us to serve more customers and local businesses by lending and investing in their community.”
In loosening their grip on JPMorgan, OCC authorities removed a critical barrier to the lender’s growth.
A 1994 law prohibits mergers between banks if the transaction would give any of them control of more than 10% of US deposits. With $1.3-T, JPMorgan already controls more than 10%m which means adding branches in new markets is one of its only avenues for expansion.
The OCC has overturned measures put in place by Thomas Curry, who led the agency from Ys 2012 to 2017. He instituted tough standards in an effort to change the perception that regulators were too close to the institutions they were meant to police.
Americas banks are responding to friendlier regulators under President Trump by pushing into new markets and reassessing deals that likely would have been vetoed under Mr. Hussein Obama.
JPMorgan is embarking on the biggest expansion of its consumer bank in a decade as new liquidity rules encourage banks to draw more funding from deposits, which tend to be cheaper, and rising interest rates stiffen the competition for retail customers. Bank of America also announced plans to open up branches in new markets earlier this year.
|NYSE:JPM||103.42||26 October 2018||-1.44||104||104.56||102.73||19,174,900|
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