Chase Bank Head Dimon Speaks Out on the Facebook’s Libra, US-China Trade War, Cryptos and More
- Yahoo Finance interviewed Jamie Dimon about Chase Bank.
- The discussion went through many different topics regarding Facebook’s Libra cryptocurrency asset, and the severity of the trade war between the United States and China.
Jamie Dimon, the head of JPMorgan Chase, took over the financial institution in 2005, preceding the launch of Bitcoin and the recession by just a few years. Since then, the bank has been the second-most lucrative business of the country with $32 billion in profits last year. Reports indicate that he’s a billionaire, and he recently spoke with Yahoo Finance about the changes that he believes will ultimately change the economy, and what he’s learned from those changes.
The interview, driven by Andy Serwer, first directs the conversation to the stock market and the current US-China trade war, as well as the trading issues with Europe and tensions with Iran. Asking how it is possible to fix this issue, Dimon describes the market as “inscrutable.”
However, he adds that geopolitics impact the economy of the whole world’s economy, saying that “trade is serious. He understands that there are consumers and corporations with concerns about supply lines, impacting consumer confidence. While Serwer pointed out that confidence is low today, Dimon replied that it is, “still quite high.”
“The better thing is to have a deal in China. There are serious trade issues, you know. So, we all want the president to deal with the issues seriously, which he is been doing. A resolution would be good. But we don't expect a quick resolution at this point.”
Laster this week, the G20 conference will take place, and Dimon believes that the best-case scenario would include renegotiating the tariffs to provide an environment for a new deal. Ultimately, this deal could even be reached by the end of the year, “if we’re lucky.” With that part of the discussion, Serwer segued into the banking industry and how this circumstance changes the banking industry.
“These branches support local small businesses. They support middle-market companies. They support consumers. So– and these new branches are great. So, we started this whole expansion, 400 new branches in 20 major cities, right at the heart of some of our competitors, in some cases. And we always– we love new formats.”
At some point in the conversation, the attention turned to the new cryptocurrency from Facebook – Libra. Asking what Dimon thinks of the new asset, Dimon first states that “blockchain is real.” He explains that there is a blockchain for their own JPM Coin, and that there are plenty of competitors on this side of the financial world. However, he brought up concerned about banking rules, know-your-customer protocols, and other policies that the traditional industry follows, curious of whether Facebook will end up following those rules.
“I also want to go serve their clients, too. So, I always look at these systems about we would like to do something too, ourselves. And we should – we don’t always want to be forced in someone else’s ecosystem.” While Dimon himself has not spoken with Facebook, he expressed that it is “very possible someone in the company did.”
The conversation became more serious about what cryptocurrency could mean for Chase, asking if it is an “existential threat.” Dimon stated that he didn’t see cryptocurrency as a threat at all, explaining that they’ve already created an inexpensive and secure banking system, which puts them at risk for competitors either in fintech or cryptocurrency, which is why they push themselves ahead with free trading that other institutions don’t offer.
To watch the whole 30+ minutes of the interview, visit here.