JPMorgan CEO Jamie Dimon Says Europe Has a ‘Real Problem’
(Bloomberg) — JPMorgan Chase & Co. Chief Executive Jamie Dimon highlighted slow bureaucracy in Europe, warning that a “weak” continent poses a major economic risk to the United States.
“Europe has a real problem,” Dimon said Saturday at the Reagan National Defense Forum. “They’re doing great things on safety nets. But they’ve pushed jobs out, they’ve driven investment out, they’ve driven innovation out. It’s kind of like a rollback.”
While he praised some European leaders who he said were aware of the problems, he warned that politics was “really difficult”.
Dimon, leader of the largest US bank, has long said the risk of a fragmented Europe is among the biggest challenges facing the world. In his letter to shareholders earlier this year, he said Europe had “some serious problems that need to be fixed.”
On Saturday, he praised the creation of the euro and Europe’s peace efforts. But he warned that the decline in military efforts and difficulties in reaching agreement within the European Union threatened the continent.
“If they fall apart, then you can say, first of all, America won’t be around anymore,” Dimon said. “This will hurt us more than anyone else because they are great allies in every way, including the shared values that really matter.”
He said the United States should help.
“We need a long-term strategy to help them become strong,” Dimon said. “A weak Europe is bad for us.”
President Donald Trump’s administration has released a new national security strategy that directs U.S. interests toward the Western Hemisphere and the protection of the homeland, while dismissing Europe as a continent heading toward “civilization erasure.”
JPMorgan is stepping up its efforts to encourage more investment in the national defense sector. In October, the bank announced it would direct $1.5 trillion over the next 10 years to sectors that strengthen U.S. economic security and resilience; That’s $500 billion more than it would provide anyway.
“It is painfully clear that the United States has allowed itself to become too dependent on unreliable sources of critical minerals, products and manufacturing,” Dimon said in his statement.
Investment banker Jay Horine is leading the effort, which Dimon calls “100% commercial.” It will focus on four areas: supply chain and advanced manufacturing; defense and aviation; energy independence and resilience; and frontier and strategic technologies.
The bank will also invest up to $10 billion of its own capital to help select companies expand, innovate or accelerate strategic production.
Separately on Saturday, Dimon praised Trump for finding ways to roll back red tape in government.
“There is no question that this administration is trying to undermine the bureaucracy that is holding America back,” Dimon said. “That’s a good thing, and we can do that and still keep the world safe for safe food, safe banks, things like that.”
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