Two stories from the banking sector this week highlight the difference between how business is done in the United States and Europe. In the US it has emerged overnight that Jamie Dimon, the chief executive of JP Morgan Chase, America's biggest bank, was paid $31m (£24m) during 2018, representing a 5% pay increase.The package is the most Mr Dimon has been paid in a year, exceeding the record $30m he received in 2007, prior to the financial crisis.The pay-out could ultimately turn out to be worth substantially more than that, however, as most of it came in the form of 'restricted stock units' that convert into shares three years from now.Mr Dimon will then be required to hold onto those shares for a further two years - so the ultimate worth of his 2018 package could ultimately prove to be a great deal higher.In a statement, the JP Morgan Chase board said Mr Dimon had received the pay-out in view of its "strong performance" during the year.JP Morgan Chase reported profits of $32.5bn … [Read more...] about Jamie Dimon: Should JP Morgan pay its boss £24m a year?
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US bank JP Morgan saw its bond trading revenue plunge 18 per cent at the end of last year as Wall Street’s dire December claimed another major scalp. The bank - a bellwether for the financial industry - said “challenging market conditions” caused revenue declines in credit trading, rates and commodities, as it published results for the fourth quarter of 2018. Fixed income trading fell to $1.9bn (£1.5bn), its lowest since the financial crisis. It comes after Citi’s disappointing fourth quarter results yesterday, which saw the income at the bank’s bond trading division slashed by 21 per cent. The third-largest US bank reported a surprise two per cent fall in revenue yesterday, again due to market volatility, particularly in December. Despite volatile trading conditions, JP Morgan reported a 67 per cent rise in profits to $7.1bn, a fourth quarter record. But at $1.98 per share, it came in slightly below analysts’ expectations of $2.20 per share. It … [Read more...] about JP Morgan disappoints as Wall Street’s dire December claims another scalp
The boss of America's biggest bank has called on political leaders to strike a more "collaborative, constructive tone" as they negotiate an end to the longest government shutdown in US history. JP Morgan chief Jamie Dimon said in the bank's latest earnings presentation that he would urge America's leaders to change tone, arguing that "businesses, government and communities need to work together to solve problems and help strengthen the economy for the benefit of everyone". His comments came as Donald Trump presides over the longest US government shutdown in history at 25 days. The shutdown has affected 800,000 US workers and stems from Mr Trump's demands that Congress pay for a border wall... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium article … [Read more...] about JP Morgan boss urges leaders to strike ‘constructive’ tone in US shutdown
The sterling would surge by at least four per cent if parliament approves Prime Minister Theresa May’s Brexit proposals in a planned vote next week, JP Morgan said. The bank’s asset management wing also warned about the potential impact of extending Article 50, something the government has ruled out. Karen Ward, the fund manager’s EMEA chief market strategist, said avoiding a no-deal Brexit would allow the Bank of England to raise interest rates, pushing sterling upwards. In comments reported by the Telegraph, Ward said extending Article 50 – the legal mechanism through which Britain is negotiating its withdrawal from the EU – would create a “worst-case scenario” situation. “Where we’re stuck in the UK is we want to have access to the EU [single market, customs union] in some way ... but we want to be sovereign, ” she said. “That’s impossible. We could talk about it for the next 10 years but you cannot square that … [Read more...] about Passing May’s Brexit deal would make sterling surge, says JP Morgan
Prolonging Brexit uncertainty by extending Article 50 would be the worst-case scenario for markets and the UK economy, JP Morgan has warned. Extending Article 50 would lead firms to “choose other countries over the UK” to build their businesses and could lead to a “death by a thousand cuts” for the UK economy, according to Karen Ward, an economist at the US investment bank. It comes after a parliamentary vote on an amendment to the Finance Bill on Tuesday night confirmed there was no majority in the Commons for a "no deal" Brexit. While that meant the risk presented by a "no deal" to the UK economy was more likely to be avoided, the potential threat of long-term political uncertainty to business... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium … [Read more...] about Delaying Brexit is ‘worst-case scenario’ for markets, JP Morgan warns