Many headlines today about Dimon's rant from this week's JP quarterly earnings call. I don't follow financials so I didn't listen to the entire call but from the YouTube clip he seems to be railing against the US Government and corporate taxes. Normally I'd be inclined to support any rant about our obviously troubled government. But, wasn't it this very federal government which saved Dimon's entire industry just 8 years ago? JP got $390+ billion in 0 int loans from the Fed another $25 B bailout from Treasury. Is that the sort of governement Dimon is ranting against?
Dimon goes so far as to say he's embarrassed to be an American. Here's a guy that "earns" at least $20 million dollars a year and leads a global company that just reported record earnings. Yet, somehow, I guess, he's saying the US government isn't doing enough for businesses such as his? He seems to be saying the government is shackling business to the detriment of "average Americans". Does this make any sense?
It often seems to me like the primary benefactors of the US federal government are almost entirely companies like Dimon's. I know we're politics free here at BBI so, maybe we can't have this discussion. But, is it really credible for any mega business to criticize the US government? Dimon Embarrassed to Be American
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that he's saying we need corporate tax reform, that the average and common man is not being taken care of. And that there are other reasons it is currently embarassing to be an American.
This is what had inspired my inital comment: "Then Dimon gave Trump and Washington at large a blunt ultimatum: “At one point, we all have to get our act together, or we won’t do what we’re supposed to do for the average Americans.” (Among the problems Dimon listed were the lack of wage growth, overdue upgrades for bridges and airports, and that “our inner city school kids are not graduating.”)
He does have an obligation to advocate things that favor his current shareholders.
Whether any of us agree that his thinking is best for America is a very different thing. And likely political.
Federal policy - any policy - is about as friendly as I can imagine for mega companies like Dimon's. So, can't understand what he's getting at there. That neutered Dodd-Frank bill maybe?
Does he want to lower taxes and build bridges and roads and help "inner-city" kids get an education? Sounds good to me but I don't know how that happens.
And even though the US has a very high (2nd highest?) statutory corporate tax rate, almost no mega company like JP pays anywhere near the statutory rate. While there's not unanimous agreement, I don't know of any credible economist or academic that would argue the effective corporate tax rate is anywhere near the statutory rate. And, not to single out JP, but they're hardly a paragon of tax paying virtue.
Seems like he's a bit unhinged.
shouldn't throw glass?
In comment 13528967
This. It flies under the radar, but he's an entitled prick.
There needs to be a moratorium on bankers complaining about America and the regulatory state. Maybe it will be ok after I die.
merger. He gathered everyone together for a town hall meeting, and he went through the myths:
-I'm not a miser
-I'm not petty (mentioned specifically going after the free milk available for employees to make coffee with)
and a few other things. He went on and on about how he didn't do these things, that they were just urban legend that followed him around as the mergers piled up at Citi.
Then, a few weeks later, all of the things he claimed he didn't do - started happening, suddenly and all over the organization.
Mind you, I never drank the free coffee - just thought it was odd that you'd go out and put something so silly out there, out loud to an entire organization, then go off and do the exact opposite.
Some other gems over the years, like how he'd chase down employees outside of company HQ waiting to take a cab home after hours. I got an earful one night, while waiting to meet a friend to go to a Rangers game, he had one of his minions ask me what project I was billing the car ride home to. I told her, find my name on a voucher for a car ride tonight and you guys can fire me tomorrow.
He's great at making money though, can't deny that - but I think he's as slimy as they come. He and that warthog Frank Bisignano (who was also implicated in the whole Eli/fake memorabilia scandal) can both take a long walk off a short pier.
Dimon great at what he does - make money.
The "embarrassed American" part was about infrastructure and education and how countries such as Ireland, India and others at least have a game plan to try and make it better. He also said there are too many lawsuits in or society. I think the rant is different than the far left or hipster milleniuals who claim to be embarrassed to be American.
Having said that, the other posters are so true. He does ask why people leave "early" on a Friday night. He does demand work on 4th of July weekend. He does not give a fuck about the little guy. He also got rid of coffee all together at the site I was at. They brought it back since too much productivity was lost to employees going out for coffee.
that Washington isn't doing anything at all, and when they do something, it's bad policy. It's been about 10 months of this. We know he's really going after the corporate tax rate and less regulation, but with that message he gets to funnel in things like education, infrastructure, because JPM will be doing all the financing for the infrastructure projects.
Great businessman, but some times lacks perspective. Considers himself this huge patriot that did a service to the country buying Bear Sterns and participating in TARP when it didn't need to. Read Too Big To Fail and other similar accounts. Meanwhile Bear Sterns was a sweetheart deal for JPM.
Dimon's qualms were mainly aimed at political gridlock and partisanship which resonates with Americans of any political affiliation.
Dimon, and corporate America to an almost universal degree, also maintain that the American tax code makes business more complex and less competitive on a global scale. Yes, the effective corporate tax rate is less than the top marginal rate but that effective rate is still rather uncompetitive (a PWC study concluded it was in the top 15% or so of comparative countries).
The infrastructure and education gripes are rather bipartisan and reflect his disgust of gridlock and partisanship, by my understanding.