Jamie Dimon, Chairman and CEO of JP Morgan Chase & Company, addressed his letter to shareholders along with the Annual Report 2022, alerting that America remains divided within its borders, and its global leadership role is being challenged outside of its borders.
complaining that the financial authorities’ rules had encouraged banks to amass large portfolios of US Treasury bonds that dropped in value as the Federal Reserve raised interest rates, leaving lenders coping with paper losses that have terrorized investors, hence the failure of Silicon Valley Bank, Signature Bank, and Credit Suisse hurting the reputation of the banking industry for the years to come and in the face of an imminent recession in the United States.
“Ironically, banks were incented to own very safe government securities because they were considered highly liquid by regulators and carried very low capital requirements, … Even worse, the Federal Reserve didn’t stress-test banks on what would happen as rates jumped.” “This is not to absolve bank management – it’s just to make clear that this wasn’t the finest hour for many players,…All of these colliding factors became critically important when the marketplace, rating agencies, and depositors focused on them.”
“make dreams possible for everyone, everywhere, every day”
He states that he and his team are champions of banking’s essential role in a community — its potential for bringing people together, for enabling companies and individuals to attain their goals, and for being a source of strength in difficult times, and alerts that complex regulation is pushing banks out of the mortgage business by driving up the cost of making and servicing loans, while also increasing legal liability. Yet his bank extended credit and raised capital of $2.4 trillion for our consumer and institutional clients around the world.
Here is the link to the 43 page document: https://reports.jpmorganchase.com/investor-relations/2022/ar-ceo-letters.htm#