The banking doyen is flexing rhetorical muscle by alienating a key blue-chip client and displaying irreverence towards the Chinese ruling party.
As J.P. Morgan marks its 100th year in China, chief executive Jamie Dimon teased the country’s Communist Party for its longevity – and its propensity for listening in on its critics.
«I made a joke the other day that the Communist Party is celebrating its 100th year – so is J.P. Morgan. I'd make a bet that we last longer,» Dimon said at a business event in Boston overnight. «I can't say that in China. They are probably listening anyway.»
Laughter vs. Displeasure
On Wednesday, the 65-year-old American was humbled into backtracking: «I regret and should not have made that comment. I was trying to emphasize the strength and longevity of our company,» according to a statement reported by several media outlets.
The remarks – met with laughter by the U.S. audience – would be frowned upon in large parts of Asia. They also contrast sharply with extremely diplomatic efforts from Dimon’s industry peers. Foreign banks like UBS are seeking to woo Chinese decision-makers in the hopes of winning a share of the country’s hot growth.
Banker as Statesman
Dimon's brand of humor-diplomacy represents a reinterpretation of being a statesman for business – and also contrasts with reality: J.P. Morgan is the first full foreign owner of a Chinese securities brokerage, and it maintains offices in at least four major cities in China for businesses like asset management.
As a result, the CEO is frequently treated as a diplomat: Dimon benefited from exemptions to Hong Kong's strict quarantine measures during a 32-hour whistle-stop last week, the territory’s chief executive Carrie Lam said.
Tesla Dispute
Dimon’s influence is also on show in a dispute with Tesla dating back to a $162 million deal seven years ago which is headed for a courtroom. Amid clashes with CEO Elon Musk, J.P. Morgan «decided some time ago that it is better off without Tesla,» «The Wall Street Journal» (behind paywall) reported on Monday.
After 16 years running J.P. Morgan including through the financial crisis of 2008/09, Dimon can afford to rest on his laurels. Though J.P. Morgan did advance two women widely seen as potential successors – Marianne Lake and Jennifer Piepszak – the bank’s board has reportedly asked Dimon to remain in the job for up to another five years.
18th-Century Roots
J.P. Morgan’s roots go back to the 1799 establishment of predecessor institution The Manhattan Company – founding members include major U.S. historical figures like Alexander Hamilton and Aaron Burr.
More than two centuries later, Dimon has crossed swords with one of their contemporaries, Donald Trump. Dimon later backtracked on unflattering comments about the former U.S. president's intelligence and pedigree, conceding that it «proves I wouldn’t make a good politician.»
