Jamie Dimon, CEO of JP Morgan, has announced a disastrous apology twice a day after saying his company will last longer than the communist regime in China.
Dimon, who spoke at Boston University on Tuesday, said: “I was just in Hong Kong and joked that the Communist Party was celebrating its 100th anniversary. So did JP Morgan. We bet on longevity.”
“I can’t say that in China. They’re probably listening anyway,” added the 65-year-old banker.
But he has apologized twice since then, with signs that even the King of Wall Street is wary of Beijing.
The first Dimon said:’I regret it, so I shouldn’t have made that comment. I was trying to emphasize the strength and longevity of the company. “
A few hours later, he added:
“Speaking that way can move us away from the more constructive and thoughtful dialogue in society that is needed more than ever.”
Speech: JP Morgan boss Jamie Dimon (taken in Paris in June) apologized twice for talking about China at Boston University’s CEO club.
Dimon’s comments risk jeopardizing JP Morgan’s growth ambitions in China and, with regulatory approval in August, became the first fully foreign securities company owner in the country. rice field. A Chinese expert in the United States said his swift apology should ensure that no serious damage had occurred. (Photo: Chinese President Xi Jinping of Beijing)
China’s Foreign Ministry today notes the statement of regret that JPMorgan Chase CEO Jamie Dimon said of the country’s ruling Communist Party, and the media “hype” the issue. He said he wanted to quit.
“I have noted reports on how the individuals involved have reflected in good faith. I think this is the right attitude. I hope the media involved will stop hype about this issue. “Masu,” Foreign Ministry spokesman Zhao Lijian answered questions and told regular daily briefings.
Dimon’s remarks have become a hot topic in Hong Kong’s financial community. Bankers were surprised that JP Morgan’s boss would comment given the sensitivity of dealings with China.
Dimon’s comments risk jeopardizing JP Morgan’s growth ambitions in China and, with regulatory approval in August, became the first fully foreign securities company owner in the country. rice field.
However, Chinese experts in the United States said Dimon’s swift apology should ensure that the long-term ambitions of banks have not been seriously damaged.
Beijing’s approval of JP Morgan to take full ownership of its securities business was a milestone in the opening of China’s capital markets after years of gradual movement and pressure from Washington. ..
Scholars say the CCP believes the involvement of foreign banks is important for China’s domestic financial development. But Western companies doing business in China still need to be cautious, they add.
Professor Eswar Prasad of Cornell University said:
Leland Miller, CEO of data company China Beige Book and an expert in China’s financial system, said:
Dimon’s comments evoked a reaction from Chinese commentators.
Hu Xijin, editor of Global Times, a nationalist tabloid, and China’s most outspoken journalist, said on Twitter: And I’m sure CPC will last longer than the United States.
When Bloomberg asked about Dimon’s comments at a press conference Wednesday, China’s Foreign Ministry spokesman Zhao Lijian replied, “Why does the promotion make a name for itself with some spectacular remarks?”
Global executives usually choose their words carefully when discussing China. In China, foreign companies can be repelled by criminal perceptions.
The Swiss bank UBS ran into problems in 2019 after a statement by one of the senior economists on food inflation and classical swine fever was interpreted as racist injuries. He was suspended for three months and UBS lost its role as a plum in bond trading for state-sponsored clients.
Earlier this year, Swedish fashion giant H & M and U.S.-based Nike Inc responded to China’s national media and e-commerce platforms after expressing concern that forced labor was used to produce cotton in the Xinjiang Uygur Autonomous Region. Faced.
“If the Chinese government publicly disagrees with the government or even engages in perceptual or indirect disrespect, the Chinese government will curb or even curb the business of foreign companies in the country,” said Prasad of Cornell University. Some are fully motivated to close. “
A week ago, Dimon was granted a tax exemption by the Hong Kong government to visit a financial hub managed by China without the need for quarantine.
Visitors to the city from most countries will have to stay in the hotel quarantine for a couple of weeks at their own expense.
He was in Hong Kong for 32 hours after arriving by private jet.
Power Couple: Dimon with his wife Judy, described by his classmate Jeff Immelt (later appointed chairman of GE) as “the most beautiful, sexiest and smartest girl in his class.”
Dimon has been considered barely touchable, at least until now.
He has been the CEO of the bank for 16 years, overcoming the financial crisis and making JP Morgan the most consistent performer on Wall Street.
His pop in China betrays self-confidence, or arrogance, in stark contrast to British rival HSBC, which has been accused of “kowtowing” to Beijing.
And there are few signs that he is ready to face. Despite being 65, he wants to stay for another five years and tells Fox Business during the summer: “I’m not going to play golf or smell the flowers.”
He survived cancer of the throat and underwent emergency heart surgery at the beginning of the pandemic.
And he lasted longer than the other giants who led the bank to the financial crisis, including Goldman Sachs’ masterpiece Lloyd Blankfein.
Dimon’s success is entrusted to his enormous energy, and he has a good sense of humor, which can quickly turn into a fierce temper.
He woke up at 5am, was fully informed, and was in the office by 7:30 am, but seems to have reduced his running and tennis.
He appeared at the event with his wife, Judy, who begged at Harvard University, and was “by far the most beautiful, sexiest, and smartest girl in class” by classmate Jeff Immelt (later appointed chairman of GE). Was described as.
He is said to remember the names of all the juniors he met, but there is also a list of people in his favor. And he wasn’t afraid to speak, even going into public clashes with the head of state.
In 2011, he asked French President Nicolas Sarkozy to acquire the G20 to avoid “over-regulation” of banks.
However, Sarkozy launched an attack on bankers after seeing a deficit, saying they made “unconventional” moves and hurt millions of people during the financial crisis.
Not surprisingly, Dimon’s time at JP Morgan made him very rich. Last year he brought home £ 24m, comparable to his 2019 salary.
But a serious stain on his copybook was the 2012 London Whale Scandal. As a result, one of JP Morgan’s Canary Wharf bankers lost a whopping £ 4.2 billion.
Dimon attends a luncheon on April 24, 2018 in the State Department of Washington in honor of President Emmanuel Macron of France.
Dimon initially dismissed the story as a “teapot tempest,” but soon regretted it.
Later, he was more despised and called the transaction “defective, complex, poorly reviewed, poorly executed, and poorly monitored.” The bank eventually paid a fine of over £ 1 billion to resolve the US and UK regulatory investigations into the problem.
Dimon’s rock star status is threatened as regulators question for some time whether banks couldn’t manage their employees after the financial crisis and whether bankers were still obsessed with risk. It was done.
But if rivals thought it was the end of Dimon, they were wrong.
He knew how to stay in power and kicked out or set aside potential successors such as Bill Winters, who continued to run Standard Chartered Bank, and Jes Staley, who went to Barclays. ..
Nonetheless, there are increasing question marks as to whether Dimon can really last for another five years.
There are rumors that three single mothers, British banker Marianne Lake, who have graduated from Reading University, are approaching the title.
Lake is responsible for running JP Morgan’s consumer finance division.
If Lake stops it, she will be Wall Street’s second-largest UK CEO, and Scottish-born Jane Fraser will lead Citigroup. But for now, like the Chinese Communist Party, Dimon seems immovable.
Jamie Dimon, CEO of JP Morgan, jokes about the Chinese Communist Party and apologizes with two moans.
Source link Jamie Dimon, CEO of JP Morgan, jokes about the Chinese Communist Party and apologizes with two moans.