Jamie Dimon’s Subtle Message to Regulators
The head of the biggest U.S. bank points out how much unregulated competition is out there.
A dried-up moat doesn’t offer much protection.
Photographer: Mike Kemp/In PicturesInvestors are used to hearing company executives on earnings calls and in presentations sugarcoat the performance of their business. So it’s surprising when there’s a straight-up admission that “despite our best efforts, the moats that protect this company are not particularly deep.” When the speaker is JPMorgan Chase & Co. Chairman and Chief Executive Officer Jamie Dimon in his annual letter to shareholders, attention must be paid.
It’s a disorienting statement because it doesn’t track the spin to which we’ve grown accustomed from the modern CEO. Deutsche Bank AG’s Christian Sewing, for example, told investors last month, that “as the biggest private bank in Germany with a leading advisory and investment offering, we have a unique position to leverage Germany’s strengths.” The superlative language belies Deutsche Bank’s relatively low market share in domestic banking.