JP Morgan CEO Jamie Dimon on Friday threw cold water on speculation that he might serve in the next US administration, insisting the chances of him quitting the Wall Street giant to work for Joe Biden’s successor is “almost nil.”
Responding to a question on his long-rumored plans to swap Wall Street for Washington, DC, the Queens native said: “I have always been an American patriot and my country has been more important to me than my company. It is important that we get things right.”
Nevertheless, Dimon quickly added that investors shouldn’t be bracing for him to head for the exit anytime soon.
“I will almost guarantee that I will be doing this for a long period of 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 profits.
Shortly after Dimon’s comments, the price of a share in JP Morgan rose by 3% to $220.20 in morning trading on the New York Stock Exchange.
It could end months of speculation that the 68-year-old is set to step down from his megabucks role at 383 Madison Avenue to serve whoever ends up winning 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 position of Treasury Secretary.
But Trump then walked those comments back just three weeks later, suggesting on Truth Social that the rumor had been made up by “the Radical Left.”
Dimon also penned a politically-charged op-ed for the Washington Post, the newspaper of choice for the D.C. elite, on Aug. 2 in which he demanded that the next president “must restore our faith in America.”
“This is precisely the time when strong American leadership is needed to unite us and strengthen the indispensable role our country plays for the safety of the world,” he wrote in the left-leaning outlet.
But the veteran banker, who has served nearly two decades as JP Morgan’s CEO, stopped short of endorsing either Trump or his Democrat rival for the White House, Vice-President Kamala Harris.
Harris replaced Joe Biden as the name at the top of the Democrat ticket after the president, 81, dropped out amid concerns about his age and ailing cognitive abilities.
A government job would also represent a eye-popping pay cut for the Wall Street titan, whose 2023 pay package included a base salary of $1.5 million and a $34.5 million performance bonus, according to regulatory filings.
By contrast, Joe Biden’s Brooklyn-born Treasury Secretary Janet Yellen picks up ‘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 he does eventually head for the exit include Mary Erdoes, the head of JP Morgan’s asset wealth management, and Jennifer Piepszak, who is co-CEO of the company’s investment bank division.
Dimon’s remarks on his possible departure from JP Morgan came as the bank announced that profits fell 2% to $12.90 billion for the three months that on ended Sept. 30.
But earnings per share of $4.37, however, exceeded expectations of $4.01, according to estimates compiled by the London Stock Exchange Group.
Revenues across the bank’s whole operations hit $5.7 billion, up 13% from the third quarter of 2023.
Executives also pointed to increased investment banking revenue of $2.4 billion, which they said was up 29% from the same period last year.
Banks are building up stockpiles – which act as a safeguard when borrowers default on their loans — to typical levels as consumers deplete the savings they built up during the pandemic.
JP Morgan said it had also set aside $3.11 billion as a safeguard for possible credit losses, compared to $1.38 billion year-on-year stockpiles in case their customers default on their loans.
Dimon struck a cautious tone on the shape 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 show that conditions are treacherous and getting worse,” he said.
“There is significant human suffering and the outcome of these situations could have far-reaching effects on both short-term economic outcomes and more importantly on the course of history.”
It comes as Israel is set to strike back at Iran and its proxies after Tehran unleashed a barrage of at least 180 ballistic missiles at the Jewish State earlier this month.
A strike against Iran’s nuclear and oil facilities could push global energy prices higher, meaning Americans will have to pay more for gas at the pump with just three weeks to go until the presidential election.
Dimon added that “inflation is slowing and the U.S. economy remains resilient” but “several critical issues remain, including large fiscal deficits, infrastructure needs, restructuring of trade and re-militarization of the world.”
“While we hope for the best, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment,” he told Wall Street analysts earlier on Friday.
