Jamie Dimon, the head of JPMorgan Chase & Co., knew the bank would have to back down in a hurry. (file)
Jamie Dimon, the head of JPMorgan Chase & Co., was struck as soon as word came out of his mouth that a joke about China could land him in hot water.
“I was just in Hong Kong, I joked that the Communist Party is celebrating its 100th year. So is JP Morgan. And I’ll give you a bet we’ll last a long time,” he said at an event in Boston on Tuesday. said. Then he added: “I can’t say that in China. They’re probably listening anyway.”
Dimon, who was shamelessly unrecognizable, also knew that the bank would have to retreat in a hurry. Soon, members of the firm’s government-relations team and China offices were forced to discuss the comments and decide whether to admit them or to lie. About 18 hours later, when it became clear that the comments garnered global attention, Dimon issued a statement of regret.
“Hundreds of individuals, companies and organizations have apologized for hurting the sentiments of the Chinese Communist Party,” said Isaac Stone Fish, founder of Strategy Risk, which specializes in corporate relations with China. By the way Dimon said he regretted his comment “there’s a better way to do this.”
Dimon’s remarks, made during a tour of Boston College’s Chief Executives Club, were followed by domestic and international visits as the JPMorgan CEO continued the US economic boom that saw him return to office on Wall Street. Also put in front. to push But her recent travel efforts have been somewhat problematic – the quarantine exemption she earned for her Hong Kong trip was also granted to actress Nicole Kidman, which drew much local criticism.
Now he’s having to downplay his Boston comments — and it’s not the first time. Dimon has a history of provocative comments that forced him to walk back. In 2018, he vowed at a philanthropic event that he could beat Donald Trump in the election because he was smarter than the president, only to make a statement an hour later saying he shouldn’t have said it.
Dimon’s boasting and apology are reminiscent of another Wall Street CEO, whose firm is a major JPMorgan shareholder, of Lloyd Blankfein’s joke years ago that Goldman Sachs Group Inc. was doing “God’s work.” The bank’s owner jokingly tries on his own life, said the executive, who asked for anonymity to avoid adding his name to the mess. The executive said Dimon would also go through any repercussions, as did Blankfein, but the distraction would be unwanted.
The State Department underscores JP Morgan’s desire to maintain cordial relations in China, where it has nearly $20 billion of exposure and ambitions to expand further. Earlier this year, the bank received approval from Chinese regulators to fully own its China securities venture and seeks to maintain its good standing in the country for further licensing requests, notably those due next year. Before major leadership changes in the party.
careful balance
And while Dimon’s comments have been met with silence from Chinese government officials, at least for now, the country has a history of taking action against companies and individuals that challenge its policies, particularly the legitimacy of the Communist Party or On sensitive issues like Taiwan. UBS Group AG came under pressure in 2019 to sack its chief economist, Paul Donovan, after he made a remark about the “sugar pig” in a note about rising consumer prices. He later apologized, saying it was “innocently intended.”
Dimon’s return also highlights that in a country where the potential profit is high, street businesses have to tread carefully when dealing with a government-sensitive government. In 2019, National Basketball Association commissioner Adam Silver was criticized for trying to appease both sides in an initial reaction after the general manager of the Houston Rockets tweeted a message of support for Hong Kong protesters.
Last year, when it faced a backlash for referring to Hong Kong and Taiwan as countries, fashion brands Coach and Versace sought to pacify consumers and show their respect for “the feelings of the Chinese people” and “national sovereignty”. Apologies immediately for correcting your websites.
China Opportunity
Nevertheless, Dimon has enjoyed considerable goodwill in China, which it has long been eyeing for its vast opportunities. He is also accustomed to risks. In his 66-page annual letter to shareholders this year, Dimon devoted more than a page to the country, writing that over the past 40 years, China has done a “highly effective job” with economic growth. But he cautioned that over the next 40 years, the country will face serious issues including resource crunch, corruption and income inequality.
Dimon stopped calling the CCP by name, but noted that only 100 million people in China “effectively participate” in the country’s one-party political system, a lower participation level than any other developed nation.
“China’s recent success has certainly made its leadership feel confident,” Dimon wrote in April. “A rising middle class almost always demands political power, which helps explain why autocratic leadership almost always falters in a larger, more complex economy.”
His remarks come even as the US and China grapple with a prolonged standoff over issues such as market access, data security and international stock listings. Wall Street is trying to improve ties with the country to gain access to its $54 trillion financial system.
Stone Fish said it remains to be seen whether Dimon’s comments will lead to any retaliation from China, though he suspects this may be where the debacle ends.
“Companies and individuals are waking up to the idea that what happens in China or China region does not stay in China,” he said. “It has real world implications for them and their businesses in the United States.”
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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