JPMorgan CEO Dimon to remain at bank and has no plans to join Trump administration, source says
2:13 pm Wednesday, November 06th, 2024
By Nupur Anand
NEW YORK (Reuters) -JPMorgan Chase CEO Jamie Dimon will remain at the bank and has no plans to join Donald Trump’s administration despite questions about whether he would take a senior government role after the U.S. presidential election, a source said.
Dimon, 68, has been the subject of repeated speculation in recent weeks as a candidate for Treasury secretary by both Republicans and Democrats, but he said last month that his chances of taking an official post were “almost nil”. Reuters was the first to report his intentions to stay at the helm.
The executive, who is one of the most prominent leaders in corporate America, has run JPMorgan for almost 19 years. The bank’s board has named four candidates to succeed Dimon when he eventually steps down.
“Our country is now concluding one of the hardest fought and at times divisive elections in our recent history,” Dimon said in a statement on Tuesday before the election results emerged. “Soon it will be time for all of us to unite behind our President elect and all of our national leaders.”
While the veteran banker continued his tradition of not endorsing any presidential candidate this year, he frequently weighed in on economic and financial policies, as well as geopolitical and national challenges.
Meanwhile, media reports said his wife Judy Dimon traveled to Michigan last weekend to campaign for Kamala Harris, Trump’s Democratic opponent.
Dimon had previously downplayed the chances of taking a government position, telling analysts in October that “I probably am not going to do it… but I always reserve the right” to reconsider.
JPMorgan’s stock jumped over 11% on Wednesday alongside a similar gain for a broader S&P 500 index of bank stocks as investors speculated the incoming administration would be more friendly to lenders.
Taylor Krystkowiak, an investment strategist at asset manager Themes ETFs in Washington, said investors would welcome the CEO remaining in place.
“Dimon has continued to guide JPMorgan effectively throughout his long tenure at the bank’s helm, and his decision to remain there is unsurprising,” Krystkowiak said.
“Given that the bank has delivered robust results under his leadership, markets will likely laud Dimon’s decision to stay, renewing fresh confidence in the stock’s prospects.”
Dimon is credited with steering the bank through the 2008 financial crisis and last year’s regional bank turmoil. During his tenure, JPMorgan became the largest bank in the U.S., far surpassing its rivals.
“He has built the bank into a formidable company and has the best job in the world, and he will likely stay where he is,” Tim Adams, CEO of the Institute of International Finance, a banking industry group, told Reuters before the election.
Speculation around Dimon’s plans intensified this year after he announced that his timeline for stepping down is no longer five years and could be as soon as two-and-a-half years.
The outspoken CEO travels frequently to Washington to speak with policymakers and has expressed views on everything from housing and the U.S.-China relationship to the economy. He vowed to “fight back” and sue regulators for rules that he viewed as ineffective in a profanity-laced address to an industry conference last week.
“I’ve always been an American patriot and my country is more important to me than my company,” Dimon told analysts on a call last month when asked about his plans.
(Reporting by Nupur Anand in New York; Additional reporting by Nivedita Balu and Saeed Azhar; Editing by Lananh Nguyen and Lisa Shumaker)
