Jamie Dimon, one of the most prominent players in American finance, has been using his annual letter to shareholders to lay out his zealot’s view of the banking sector during times of economic stress and disruption. In his latest letter, the JPMorgan Chase chief executive outlines the role of banks as the guardians of the financial system in the face of encroaching shadow banks and fintechs.
Dimon’s argument revolves around the idea of banks creating “franchise value” through their relationships with clients in order to profit off of asset-light and capital-light services. Despite increasing levels of regulation and centralization, Dimon is confident that traditional lenders can still be relied upon for certain services. Moreover, it is believed that banks with physical branches, employees, and knowledge of potential clients have an added advantage over other financial institutions.
JPMorgan Chase, founded in 2000 after the merger of JPMorgan & Co. and Chase Manhattan Corporation, is today the largest financial institution in the United States and the seventh largest by total assets in the world. Internationally, the bank boasts a robust line of services from retail banking, corporate and investment banking, to capital markets and asset management. As the leader of the bank, Jamie Dimon continues to push for what is best for customers and shareholders alike. He looks to bring stability to the banking sector by advocating for higher standards in business practices as well as taking steps to reduce risks.
Not only is Dimon a titan of the banking industry, he has been involved in several community-building initiatives. In 2017, the philanthropic organization Robin Hood appointed Dimon to the board of trustees, the same year he formed the Skills & Opportunities Fund at JPMorgan Chase. This fund seeks to provide financial support to community-based organizations offering workforce training initiatives and summer internships for budding entrepreneurs. He continues to spread his influence to social issues of concern and to extoll the importance of an equitable and productive environment.