JPMorgan Chase CEO Jamie Dimon warns of business – Business News
JPMorgan Chase CEO Jamie Dimon issued a thinly veiled warning to New York City Mayor Zohran Mamdani on Tuesday, saying crushing taxes and crimson tape are already sparking a “large exodus” of companies out of the Big Apple.
In his annual letter to shareholders, the 70-year-old Queens native confused the Big Apple faces stiff competitors from different financial facilities each within the US and overseas, suggesting that the hard-left Hizzoner’s tax-and-spend insurance policies would do nothing to help swell City Hall’s coffers.
“Cities — like individuals, companies, and countries — need to compete,” Dimon wrote, “No matter who you might be, you need to deal with actuality and the reality.
The JPMorgan CEO solely opened the financial giant’s new HQ on Park Avenue final yr, however warned he too might transfer more jobs out of New York except there may be a shift in coverage. JPMorganChase
“The truth is that while New York City has much going for it, particularly for financial companies (because of extraordinary local talent), it also has the highest city and state corporate taxes and the highest individual income and state taxes,” the Wall Street veteran continued.
“People often make this a moral or loyalty issue, but it is not,” he added, stopping short of mentioning Mamdani by title.
After profitable workplace final yr on marketing campaign guarantees to “tax the rich,” the democratic socialist mayor has been pushing a menu of tax hikes — together with growing New York’s company fee from 7.25% to 11.5% and slapping a 2% personal income tax increase on anybody raking in more than $1 million a yr.
Democratic New York Gov. Kathy Hochul must approve any fiscal blueprint proposed by Mamdani, who says hikes are essential to plug a black gap within the Big Apple’s funds. NYC’s bean counter-in-chief, Comptroller Mark Levine, has predicted that might be as a lot as $12 billion within the subsequent two years.
The Post has sought remark from City Hall and Hochul’s workplace.
Mayor Zohran Mamdani needs to hike taxes on the rich and main firms. But he’ll need the sign-off from Governor Kathy Hochul for his concepts to turn into law. Matthew McDermott for NY Post
“Companies need to remain competitive in this very tough, fast-moving world. And higher taxes mean lower returns on capital and less competitiveness by their nature,” Dimon wrote.
The Wall Street veteran pointed to a clear sample: rich New Yorkers and main firms are already voting with their toes.
“You can already see a fairly large exodus of people and jobs out of some states with high taxes and high expenses,” he said.
Dimon’s letter echoed latest feedback from Steve Fulop, CEO of the Partnership for the City of New York.
He pointed to firms together with Marc Rowan-led Apollo Global Management , which is reportedly scouting areas in Texas and Florida for a second US headquarters.
“Apollo’s move is not an isolated case,” Fulop mentioned Sunday on 77 WABC Radio’s “Cats Roundtable.”. “It reflects a broader trend tied directly to competitiveness and business leaders feel that some elected officials are tone deaf to the broader economic environment and have no realistic long term plan to fix the affordability crisis beyond raising costs which will only further the challenges.”
Dimon opened the new JPMorgan headquarters final yr, with the building having an estimated price of $3 billion. Bloomberg by way of Getty Images
JPMorgan’s gigantic new headquarters opened on Park Avenue simply final yr, however Dimon warned he, too, might transfer more jobs out of New York except there may be a shift in coverage.
“While New York City is still our company’s global headquarters, we have shrunk our headcount in the city, from 30,000 a decade ago to 24,000 today, and increased our headcount in Texas, from 26,000 in 2015 to 32,000 today. This trend will likely continue,” the exec wrote.
He added that the shift can typically spell “a disaster for a city” — simply because it did within the Seventies, when practically half of the 125 Fortune 500 firms primarily based in New York fled attributable to hovering taxes, workplace rents, and labor prices.
The prime money man’s annual letter to shareholders has turn into a custom since he turned chief government.
In latest years, the missive has moved past specializing in JPMorgan’s efficiency to sharing Dimon’s ideas on politics, international coverage, and even navy spending.
Dimon mentioned the US-Israeli conflict on Iran means there may be “the potential for significant ongoing oil and commodity price shocks, along with the reshaping of global supply chains, which may lead to stickier inflation and ultimately higher interest rates than markets currently expect.”
Dimon warned that the Iran conflict might stoke inflation and result in larger rates of interest. But he maintained his supportive stance on President Trump’s determination to take out Tehran’s management. Getty Images
But he indicated that he was broadly supportive of the Trump administration’s determination to take out Tehran’s management and stop the nation from buying a nuclear weapon.
“We should not turn a blind eye to the role the current regime in Iran has played in fostering terrorism and killing thousands of people, including Americans and many of its own citizens, over many years,” he wrote. “That threat must be addressed in an appropriate manner.”
Two key topics went unmentioned on this yr’s letter which have been the main focus of clashes between America’s prime banker and the commander-in-chief.
One was a latest lawsuit introduced by President Trump towards JPMorgan and Dimon for closing his bank accounts after the Jan. 6, 2021, riot on the US Capitol.
The different was a Justice Department probe into Federal Reserve Chair Jerome Powell over the central bank’s $2.5 billion renovations of its Washington, DC, headquarters.
GOP lawmakers and White House insiders accused Powell of mendacity to Congress in regards to the work during testimony final summer season, prompting US Attorney Jeanine Pirro to step in and order the probe.
But Dimon, talking during a media call to unveil the bank’s fourth-quarter ends in January, defended Powell, saying “anything that chips away” on the central bank’s independence “is not a good idea.”
The bank is set to release its newest numbers for the primary three months of 2026 on April 14, in keeping with a assertion posted on its investor relations web site.
