{"id":55474,"date":"2024-05-21T15:22:18","date_gmt":"2024-05-21T15:22:18","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/21\/jamie-dimon-succession-at-jpmorgan-is-well-on-the-way-times-of-india\/"},"modified":"2024-05-21T15:22:18","modified_gmt":"2024-05-21T15:22:18","slug":"jamie-dimon-succession-at-jpmorgan-is-well-on-the-way-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/21\/jamie-dimon-succession-at-jpmorgan-is-well-on-the-way-times-of-india\/","title":{"rendered":"Jamie Dimon: Succession at JPMorgan is \u2018well on the way\u2019 – Times of India"},"content":{"rendered":"
\"Jamie<\/div>\n
Jamie Dimon has long joked that his retirement is five years away, no matter when he\u2019s asked. But not on Monday.
The chief executive officer of JPMorgan Chase & Co told shareholders the timetable is \u201cnot five years anymore,\u201d in response to a question about how long he planned to remain CEO. The largest US bank is \u201cwell on the way\u201d with its succession plans, he said during the firm\u2019s investor day.
The question of who might steward the firm after Dimon \u2014 who has held the top job since 2006 \u2014 has loomed over the industry. Earlier this year \u2014 about halfway through Dimon\u2019s five-year retention package \u2014 the 68-year-old CEO moved some of his top lieutenants into new senior roles, positioning them for more experience running the firm\u2019s operations as he prepares potential successors.
The shuffle placed Jenn Piepszak and Troy Rohrbaugh atop an expanded commercial and investment bank while Marianne Lake, who had co-led the consumer and community bank alongside Piepszak since 2021, got sole control of the segment, overseeing more of its business lines.
\u201cIt\u2019s up to the board \u2014 it\u2019s not up to me,\u201d Dimon said on Monday. \u201cI have the energy that I\u2019ve always had. That\u2019s important. I think when I can\u2019t put the jersey on and give it my fullest, I should leave, basically.\u201d
Reviewing the days\u2019 presentations from the leaders of JPMorgan\u2019s various business lines, Dimon tempered expectations from some analysts that the bank\u2019s excess capital might support increased share buybacks.
\u201cWe\u2019re not going to buy back a lot of stock at these prices,\u201d he said, adding that the bank will be more aggressive about repurchases when its stock price declines. The shares, which closed at a record high last week, fell after his comments and ended the day 4.5% lower. They\u2019re still up 15% this year.
Guidance boost<\/span>
The bank raised its forecast for this year\u2019s net interest income to $91 billion after last month predicting a $90 billion haul, on less than expected interest rate cuts by the Federal Reserve. Fewer customers are also shifting money to higher-yielding accounts than anticipated, according to the bank. In the first quarter, JPMorgan had posted $23.1 billion of NII, breaking a streak of seven quarters of a record for the metric.
JPMorgan also offered details of potential fallout from a proposed plan to increase capital requirements for big banks. Fed officials have indicated that the proposals, known as Basel III Endgame, will be pared back. Bloomberg reported that agencies are working on a new version that could be finalized as soon as August.
Even with the potential for stricter capital requirements, JPMorgan expects to deliver a 17% return on tangible common equity over the medium term, it said in its presentation.
Basel blasted<\/span>
Dimon, who has long been the most vocal critic of the Basel proposals among his Wall Street peers, reiterated his criticisms that they\u2019ll hurt the poorest consumers, pushing some outside the banking system. Regulation is \u201cdamaging America at this point,\u201d he said.
JPMorgan earlier on Monday said that two-thirds of consumers would likely have to pay a monthly service fee for their checking accounts if the current proposals are implemented. JPMorgan said that doesn\u2019t reflect its current plans for dealing with the rules.
The regulation onslaught, as consumer and community bank CEO Lake called it during her presentation, has the potential to profoundly impact consumers, she said.
\u201cThese rules have not been adequately studied, and the people who will end up being impacted the most will be everyday Americans, in particular those who can least afford it,\u201d Lake said.
Mid-teens boost<\/span>
As well as Lake, investors also heard from Piepszak and Rohrbaugh about progress in JPMorgan\u2019s commercial and investment bank.
JPMorgan expects the emergence of a deal rebound to help bolster investment-banking fees for the second quarter by a percentage in the \u201cmid teens\u201d compared with a year earlier, Rohrbaugh said.
For the markets business, the increase will probably be in the \u201cmid-single digits,\u201d he said.<\/div>\n