JPMorgan Chase Chairman and CEO Jamie Dimon released his closely-watched annual letter to shareholders on Tuesday. He lauds today's more "business friendly environment," in terms of federal regulation, while opining on themes from fintech to European politics. Here's what the head of America's largest bank has to say:
- The number one geopolitical risk for the global economy is the dissolution of the European Union. "The unraveling of the EU and the monetary union could have devastating economic and political effects. While we are not predicting this will happen, the probabilities have certainly gone up," Dimon writes, presumably referring to this month's French presidential elections.
- NAFTA reform "will be worked out in a way that is fair and beneficial for both sides," but trade reform with China will be "far more complex," given the many protectionist policies employed by the world's second largest economy.
- Banks are hungry for regulatory reform. "No rational person could think that everything that was done [with the passage and implementation of Dodd-Frank] was good, fair, sensible and effective, or coherent and consistent in creating a safer and stronger system."
- Too-big-to fail is over. "The American public has the right to demand that if a major bank fails, they, as taxpayers, would not have to pay for it, and the failure wouldn't unduly harm the U.S. economy. In my view, these demands have now both been met."