- Dimon jokes about how both CCP and JP Morgan were celebrating centenaries
- During a speech at Boston College, Dimon said, ‘I bet we last longer
- The King of Wall Street issued at least two raucous apologies the next day
- Dimon said in a statement, ‘I’m sorry and I shouldn’t have made this comment.
- Dimon’s quick apology underscores China’s power over the finance industry
JPMorgan CEO Jamie Dimon has issued two regrettable apologies a day after saying his firm would topple China’s communist regime.
Speaking at Boston College on Tuesday, Dimon quipped: ‘I was just in Hong Kong and I joked that the Communist Party was celebrating its hundredth year. So is JP Morgan. I bet we will stay for a long time.’
‘I can’t say that in China. They’re probably listening anyway,’ said the 65-year-old banker.
But in a sign that even the king of Wall Street is wary of Beijing, he has since apologized twice.
At first Dimon said: ‘I’m sorry and I shouldn’t have made that comment. I was trying to emphasize the strength and longevity of my company.
Hours later, he said: ‘I am really sorry for my recent remarks because it is never right to joke about or defame any group of people, be it the country, its leadership, or society and Be a part of the culture.
‘Speaking like this can take away from the constructive and thoughtful dialogue in society, which is needed now more than ever.’
Speech: JPMorgan boss Jamie Dimon (pictured in Paris in June) has apologized twice for comments made about China at Boston College’s Chief Executives Club.
Dimon’s comments jeopardized JPMorgan’s growth ambitions in China, where it won regulatory approval in August to become the first wholly foreign owner of a securities brokerage in the country. Chinese experts in the United States said his quick apology should ensure no serious damage was done. (Pictured: Chinese President Xi Jinping in Beijing)
China’s foreign ministry said today that it regretted a comment made by JPMorgan Chase chief executive Jamie Dimon about the country’s ruling Communist Party and said it expected the media to “hype” the issue. will shut down.
‘I’ve seen reports about how the person involved has reflected honestly. I think this is the right attitude. I hope the media involved will stop airing the issue,’ Foreign Ministry spokesman Zhao Lijian said at a regular daily briefing in response to a question.
Dimon’s remarks have been a hot topic in Hong Kong financial circles, with bankers wondering whether the JPMorgan boss would comment given the sensitivity of its handling of China.
Dimon’s comments jeopardized JPMorgan’s growth ambitions in China, where it won regulatory approval in August to become the first wholly foreign owner of a securities brokerage in the country.
However, Chinese experts in the United States said Dimon’s quick apology should ensure that the bank’s long-term ambitions are not seriously harmed.
Beijing’s approval for JPMorgan to take full ownership of its securities business was a milestone in opening up China’s capital markets after years of gradual moves and pressure from Washington.
Academics say the CCP sees the participation of foreign banks as critical to China’s domestic financial development. However, he says, Western companies doing business in China still need to tread carefully.
“Dimon’s apology shows that foreign businessmen have to show a degree of respect for the Chinese government in order to remain in good standing and access the country’s markets,” said Cornell University professor Ishwar Prasad.
“I don’t think it will have any long-term consequences,” said Leland Miller, chief executive of data firm China Beige Book and an expert on China’s financial system.
Dimon’s comments sparked a backlash from commentators in China.
China’s most outspoken journalist Hu Xijin, editor of the nationalist tabloid Global Times, said on Twitter: ‘Think long term! And I bet the CPC will overtake the USA.’
Asked by Bloomberg about Dimon’s comments at a news conference on Wednesday, Chinese Foreign Ministry spokesman Zhao Lijian replied: ‘Why the publicity stunt with some grand remarks?’
Global executives typically choose their words carefully when discussing China, where foreign companies are sometimes subject to backlash for alleged crimes.
Swiss bank UBS ran into trouble in 2019 after one of its senior economists interpreted a comment about food inflation and swine fever as racist slurs. He was suspended for three months and UBS lost a key role on a bond deal for a state-backed client.
Earlier this year, Swedish fashion giant H&M and US-based Nike Inc. faced a backlash from Chinese state media and ecommerce platforms after concerns were raised about allegations that cotton was being produced in Xinjiang. For forced labor was used.
Cornell’s offering said, “The Chinese government has demonstrated its willingness to close or, in some cases, close foreign businesses in the country if they openly challenge the government or even alleged or indirectly involved.”
A week earlier, Dimon was granted an exemption by the Hong Kong government without the need to visit the Chinese-controlled financial center.
Tourists coming to the city from most countries will have to stay in hotel quarantine for two to three weeks at their own expense.
He stayed in Hong Kong for 32 hours after arriving by private jet.
Power couple: Dimon with wife Judy, who was described by classmate Jeffrey Immelt – later became GE president – as ‘the best looking, sexiest and smartest girl ever in the class’.
Dimon has been seen – at least until now – as almost untouchable.
He remained as the bank’s chief executive for 16 years, surviving the financial crisis and making JPMorgan the most consistent performer on Wall Street.
His pop in China reflects a self-confidence – arrogance in fact – that is in stark contrast to British rival HSBC, which has been accused of ‘suppressing’ Beijing.
And there’s no sign he’s ready to stand down. Despite being 65 years old, it is understood he wants to stay for another five years, telling Fox Business over the summer: ‘I’m not going to play golf and smell the flowers.’
He has survived throat cancer and has had emergency heart surgery at the start of the pandemic.
And he has outperformed other titans who have led their banks into financial trouble, including Goldman Sachs supremo Lloyd Blankfein.
Dimon’s success is down to his immense energy and while he has a good sense of humour, this can quickly turn into a fiery temper.
He wakes up at 5 a.m. and is fully briefed and is in the office by 7.30 a.m., although he has cut back on running and tennis.
He appears at shows with his wife, Judy, whom we wooed at Harvard and described by classmate Jeffrey Immelt – who later became GE’s president – as ‘the best-looking, sexiest, and best-looking man ever in the class’. Smartest girl’.
It is said that he remembers the names of every junior he meets, but he also has a list of who owes him. And he has never been afraid to speak up and has even publicly been drawn to confrontations with heads of state.
In 2011 he asked French President Nicolas Sarkozy to get the G20 to avoid ‘overregulation’ of banks.
But Sarkozy looked red and attacked the bankers, saying that during the financial crisis they took steps that “disregarded common sense” and harmed millions.
Unsurprisingly, Dimon’s time at JP Morgan has made him a very wealthy man. Last year he took home £24 million, matching his salary in 2019.
But a significant blot on his copybook was the London whale scandal of 2012, which resulted in a massive £4.2 billion loss to one of JPMorgan’s Canary Wharf bankers.
Dimon attends a luncheon in honor of French President Emmanuel Macron at the State Department on April 24, 2018 in Washington
Dimon initially dismissed the story as ‘a storm in a teapot’, which he soon regretted.
He was even more dejected later, calling the trades ‘flawed, complicated, poorly reviewed, poorly executed and poorly monitored’. The bank eventually paid a fine of over £1bn to settle US and UK regulatory investigations into the matter.
For some time, Dimon’s rock star status was under threat as regulators questioned whether banks were unable to control their employees after the financial crisis and whether bankers were still accustomed to risk.
But if rivals thought this was the end of Dimon, they were wrong.
He knows how to retain power and has ousted or sidelined potential successors, including Bill Winters, who went on to run Standard Chartered, and Jess Staley who went to Barclays.
Still, question marks have risen as to whether Dimon can really last another five years.
There are rumors that British banker Marianne Lake, a Reading University graduate and single mother of three, is getting closer to taking the degree.
Lake is responsible for running the consumer lending arm of JPMorgan.
Should Lake shut it down, she would become the second major British chief executive on Wall Street, with Scottish-born Jane Fraser leading Citigroup. But for now, like the Chinese Communist Party, Dimon appears immovable.