Kicking the succession can down the road, JPMorgan assures investors Jamie Dimon has no plans to run for U.S. President—yet
Jamie Dimon has steered the world’s most valuable bank for over 17 years, through the maelstrom of the global financial crisis and a once-in-a-century pandemic. In the process he’s scooped up competitor after competitor—names like Bear Stearns, Washington Mutual, and most recently First Republic—and cemented JPMorgan’s dominance at the top of the industry’s league tables.
Whatever one may think about JPMorgan Chase, a bank now so large that the First Republic deal needs a legal waiver just to proceed, Dimon himself is considered a constant. In December, Bloomberg even elevated him to the status of “greatest banker of his time.”
Now, Dimon's stature—and length of tenure—have raised questions about who will replace him, and what he will do next.
“My best estimate would be the stock declines by 5% if Jamie were to leave suddenly,” banking analyst Mike Mayo of Wells Fargo told Yahoo Finance on Saturday. “Which would make him the $20 billion man.”
The issue of CEO succession on Wall Street came to the forefront with Morgan Stanley veteran boss James Gorman's recent announcement of his plans to step down, prompting Bloomberg TV to probe Dimon last week over a potential run for public office.
While Dimon gave no impression he was backtracking from a pledge he made last month to stay in the saddle for another “three and a half years,” he left the door open just enough for speculation to quickly start pouring in.
That slight bit of possibility opened up a tsunami of speculation—and led bank officials to finally decide it was time to nip any further talk of an imminent political career in the bud.
Looming dilemma over 2024 rematch
On Monday, JPMorgan assured its shareholders that one of the foremost authorities on global finance will remain true to his word.
“As he has said in the past, Jamie has no plans to run for office,” the bank said. “He is very happy in his current role.”
One of the reasons for the fervent speculation is the looming dilemma of a 2024 rematch between two Oval Office holders, Biden and Trump, an outcome few Americans consider ideal.
Doubts abound over whether the duo have the stamina at their age to credibly run for the country’s highest office, with Biden already 80 and Trump turning 77 this month. Experts worry both parties suffer from a thin bench, questioning whether there are any capable alternatives, or if the two men are really the best each party has to offer.
A Reuters/Ipsos poll conducted in April already showed that a majority of registered voters do not want either to run again.
When Bloomberg TV, owned by former Biden 2020 presidential rival Michael Bloomberg, interviewed Dimon, its presenter Stephen Engle almost sounded like he was asking for his boss.
“Wall Street is not too pleased about a potential Trump versus Biden runoff next year. Has the scenario ever crossed your mind that you would run for public office?” asked Engle.
It's perhaps no surprise then that billionaire hedge fund manager Bill Ackman publicly endorsed him as a candidate within hours of the JPMorgan boss suggesting “maybe one day” he’ll serve his country.
Real-life succession
Whether any of Dimon's purported successors is up to the job of managing a $400 billion behemoth that dwarfs all rivals is a question that is sure to worry investors.
The profile of corporate and investment banking boss Daniel Pinto is a fraction of Dimon’s, while the co-CEOs of JPMorgan’s retail bank Chase—Jennifer Piepszak and Marianne Lake—are still mired in controversy over their acquisition of fraudulent fintech Frank.
April’s annual letter to shareholders included only a brief reference to the bank’s “hit-by-the-truck” succession plan that involved “multiple successor candidates who are well known to the board and to the investor community.” One would only expect so given the size of the shoes that person will have to fill.
For now, however, it looks as if Wall Street won’t have to say goodbye to Jamie Dimon just yet.
This story was originally featured on Fortune.com
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