Associated Press JPMorgan Chase CEO Jamie Dimon vented his irritation with politicians and the news media Friday.@cutline: , arguing that the nation is spending too much time bickering instead of solving real issues. (AP Photo/J. Scott Applewhite, File)
Saturday, July 15, 2017 1:00 am
JPMorgan profit: $7 billion
Washington gridlock gets under CEO's skin
KEN SWEET | Associated Press
NEW YORK – After JPMorgan Chase posted a record $7 billion quarterly profit, the last thing a contentious Jamie Dimon wanted to talk about Friday was his company's earnings.
Instead, the CEO of the nation's largest bank vented his irritation with politicians and what he called gridlock that's preventing the economy from doing even better.
Dimon, a member of President Donald Trump's business advisory council, has a reputation for speaking with little to no filter. He's complained in the past that U.S. policymakers spend too much time arguing rather than improving the economy.
The U.S. economy has been expanding at less than 2 percent a year since the Great Recession, which is below the typical growth after an economic downturn.
The bank reported a profit of $7.03 billion, or $1.82 per share, an improvement from a profit $6.20 billion, or $1.55 a share, a year ago. The results beat analysts' expectations.
JPMorgan's investment and corporate banking division earned $2.71 billion compared with $2.49 billion a year earlier, and saw a 17 percent rise in investment banking fees.
Dimon said national economic growth would be higher if Washington gridlock would ease.
“It's almost an embarrassment being an American citizen traveling around the world ... listening to the stupid (expletive) we have to deal with in this country,” he said in a call. “At one point we all have to get our act together or we won't do what we're supposed to do for the average Americans.”
As head of the nation's biggest bank, Dimon has a big stake in how Washington operates and how the U.S. economy performs. And while Trump's business advisory council cannot make policy decisions, it does have input on what the White House's priorities should be for big companies including JPMorgan.
Republicans who control of both houses of Congress and the White House have proposed cutting corporate income taxes, which would directly benefit JPMorgan's bottom line, and infrastructure spending would add to U.S. gross domestic product. There is also talk about trimming back some of the strict regulations put in place following the financial crisis that bank CEOs like Dimon have argued are restricting the ability of banks to lend money.
Whether those regulations are really restricting lending is a topic of debate. Nearly all banks are making more loans, including JPMorgan Chase, and bank profits are up.
“What's the evidence that regulations are seriously impeding the banking industry or any other industry?” said Dean Baker, an economist with the left-leaning Center for Economic and Policy Research.
Baker said one reason for the gridlock is the inability of Republicans to coalesce around a unified agenda. For example, some want tax cuts to stimulate growth, but other Republicans are worried about deficits that could rise if taxes were cut too sharply.
Dimon, when asked by a business journalist about the firm's bond trading results following the Federal Reserve's interest rate increase last month, called for reporters to focus less on the quarter-to-quarter changes in its business and more on bigger issues like infrastructure, the opioid epidemic, taxation and jobs.
“(Reporters) should be writing a lot more about that the stuff that is holding back and hurting average Americans. Who really cares about fixed-income trading in the last two weeks of June, I mean seriously?” he said.
While the bank overall has benefited from the Fed's decision and has been making more loans across all its businesses, this quarter's quiet stock and bond markets depressed the bank's trading revenue by 17 percent. Fixed-income trading revenue was down 19 percent from last year, while stock trading was mostly flat.