JPMorgan’s boss Jamie Dimon has a bone to pick with cryptocurrencies, shadow banking, and the financial technology (fintech) economy. In a letter to JPMorgan shareholders, Dimon explained that banks are “playing an increasingly smaller role in the financial system” and there’s a list of items like digital currencies he’s named that needs to be “dealt with – and rather quickly.”
Jamie Dimon’s Letter to JPMorgan Shareholders Says Banks Need to Focus on the Future
Jamie Dimon has written a comprehensive letter to shareholders about the company’s accomplished goals and future concerns. Dimon’s letter, of course, meets the needs of his friends in Davos and the World Economic Forum’s 2030 playbook. The JPMorgan CEO addressed many of these targets like addressing climate change and lending more money to minorities who have limited access to banking.
In addition to the accomplishments and future changes, Dimon noted that financial incumbents are “bogged down in the past” and a concentration needs to be dedicated to the future.
Dimon highlights that U.S. banks have grown much smaller in comparison to shadow banks, fintech, and the magnitude of the ‘Big Tech’ companies. The JPMorgan CEO thinks however that it is “more important” for payment transactions to flow through the U.S. banking system than these alternatives.
“Transactions made by well-controlled, well-supervised, and well-capitalized banks may be less risky to the system than those transactions that are pushed into the shadows,” the letter to shareholders insists.
Competition and Dealing With Cryptocurrencies Rather Quickly
Still, Dimon recognizes the need for competition in the financial world.
“We need competition – because it makes banking better – and we need to manage the emerging risks with level playing field regulation in a way that ensures safety and soundness across the industry,” he stressed. Despite the competition,…