Apr 4, 2017

Jamie Dimon says "too big to fail" is no longer a problem

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."

Go deeper

American carnage

Protesters race up a hill to avoid tear gas in Philadelphia, June 1. Photo: Mark Makela/Getty Images

The list of victims has swiftly grown since George Floyd died in police custody just eight days ago.

The big picture: Protests against police brutality have turned into a showcase of police brutality, with tear gas and rubber bullets deployed against crowds. The police have the arsenals at their disposal, but we're also seeing law enforcement officers becoming targets.

McConnell blocks resolution condemning Trump's actions against peaceful protesters

Senate Majority Leader Mitch McConnell (R-Ky.) blocked a resolution introduced by Minority Leader Chuck Schumer (D-N.Y.) on Tuesday that would have condemned the use of tear gas and rubber bullets against peaceful protesters outside the White House on Monday in order to allow President Trump to walk to St. John's Church.

What they're saying: "Justice for black Americans in the face of unjust violence, and peace for our country in the face of looting, riots, and domestic terror. Those are the two issues Americans want addressed," McConnell said on the Senate floor.

George W. Bush breaks silence on George Floyd

Goerge Bush in Michigan in 2009. Photo: Bill Pugliano/Getty Images

Former President George W. Bush (R) wrote in a statement Tuesday that he and his wife, Laura, are "anguished" by the death of George Floyd, and said that "it is time for America to examine our tragic failures."

Why it matters: It's a stark juxtaposition when compared to fellow Republican President Trump's response to current civil unrest. While Trump has called for justice in Floyd's death, he's also condemned protestors and threatened to deploy military personnel if demonstrations continue.