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- JPMorgan chief executive Jamie Dimon published his annual shareholder letter on Tuesday.
- The letter touched on Silicon Valley Bank, regulation, artificial intelligence, policy, and more.
- Listed below are the eight best quotes from Dimon's 43-page letter.
Jamie Dimon, JPMorgan's CEO, published his annual letter to shareholders on Tuesday. The wide-ranging, 43-page report nodded to the banking crisis, geopolitical risks, artificial intelligence, regulation, and more.
The 67-year-old Wall Street veteran has helmed JPMorgan for 18 years. He was a key player through the 2008 financial crisis, and more recently emerged as a leader in the banking turmoil that began with Silicon Valley Bank in March.
Here are the 8 best quotes from Dimon's shareholder letter.
1. "[W]e operate with a very important silent partner — the U.S. government — noting as my friend Warren Buffett points out that his company's success is predicated upon the extraordinary conditions our country creates. He is right to say to his shareholders that when they see the American flag, they all should say thank you. We should, too."
2. "The window for action to avert the costliest impacts of global climate change is closing. At the same time, the ongoing war in Ukraine is roiling trade relations across Europe and Asia and redefining the way countries and companies plan for energy security. The need to provide energy affordably and reliably for today, as well as make the necessary investments to decarbonize for tomorrow, underscores the inextricable links between economic growth, energy security and climate change."
3. "Artificial intelligence (AI) is an extraordinary and groundbreaking technology. AI and the raw material that feeds it, data, will be critical to our company's future success — the importance of implementing new technologies simply cannot be overstated."
4. "Regarding the current disruption in the U.S. banking system, most of the risks were hiding in plain sight. Interest rate exposure, the fair value of held-to-maturity (HTM) portfolios and the amount of SVB's uninsured deposits were always known — both to regulators and the marketplace. The unknown risk was that SVB's over 35,000 corporate clients — and activity within them — were controlled by a small number of venture capital companies and moved their deposits in lockstep."
5. "As I write this letter, the current [banking] crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come. But importantly, recent events are nothing like what occurred during the 2008 global financial crisis (which barely affected regional banks)."
6. "Our board is responsible for succession planning, and it is on the agenda every time board members meet — both when they are with me and when I am not in the room. We already have a 'hit-by-the-truck' plan ready to go (not all companies can say this), and we have multiple successor candidates who are well known to the board and to the investor community."
7. "We've had 10 years of home and stock price appreciation, and even if we go into a recession, consumers would enter it in far better shape than during the great financial crisis."
8. "The war in Ukraine, already into its second year, has been particularly devastating in terms of casualties and damage and has been haunted by the threat of nuclear weapons. It may very well last for many more years. Wars are unpredictable, and at the start, most predictions about how they will end have been completely wrong."