For extra crisp and insightful enterprise and financial information, subscribe to
The Every day Upside e-newsletter.
It is utterly free and we assure you will be taught one thing new daily.

America’s shadow Treasury Secretary would really like you to verify your inbox.

On Tuesday, JPMorgan Chase chief Jamie Dimon launched his annual letter to shareholders and, like yearly, it is extra of a manifesto than a greeting card. As large banking’s longest-tenured chief government and the one chief who knew life on the helm earlier than the 2008 monetary disaster, Dimon unsurprisingly had lots to say — and fingers to level — in regards to the banking business’s present turmoil. Take into account this the SparkNotes.

Screamin’ and Yellen

So who does Dimon blame for the collapse of Silicon Valley Financial institution, Signature Financial institution, and Credit score Suisse? Properly, not the banks, precisely. Nor their panicky, rich depositors, both. Certain, banks failed to regulate for The Fed’s (none-too-surprising) rate-hiking journey, leaving their massive portfolios of US treasury bonds uncovered and plummeting in worth as cash received costlier. However regulators inspired such conduct, Dimon insists, and performed annual stress assessments that did not account for the implications of fee hikes. “This isn’t to absolve financial institution administration — it is simply to clarify that this wasn’t the best hour for a lot of gamers,” Dimon wrote.

Ominously, “America’s Banker” claimed that the disaster is “not but over.” However that is only one man’s take. Precise Treasury Secretary Janet Yellen additionally made public remarks in regards to the banking mess on Tuesday, inadvertently putting her and the elder Wall Road statesmen at loggerheads:

• “We should always not purpose for a regulatory regime that eliminates all failure however one which reduces the prospect of failure and the percentages of contagion,” Dimon wrote, including that elevated or knee-jerk rules may exacerbate large banks’ shrinking urge for food for extra democratic client providers, like residence mortgage lending.
• Yellen took a distinct tack, claiming “issues are stabilizing,” and including that officers “must resolve what regulatory and supervisory adjustments should be put in place that perhaps this episode has highlighted. However we do not have a weak banking system.”

Sunday Nights on HBO: Succession is on everybody’s minds nowadays, together with the 67-year-old Dimon. He assured in his letter that the query of his eventual substitute “is on the agenda each time board members meet — each when they’re with me and when I’m not within the room.” It is a query that’s now virtually a decade outdated.

Frankly, My Expensive: Maybe explaining why Dimon’s be aware was significantly prickly this yr is a sure arraignment that occurred in Decrease Manhattan Tuesday afternoon when the Division of Justice charged Charlie Javice, founder of faculty monetary planning platform Frank, with defrauding JPMorgan of $175 million when the financial institution acquired the start-up in 2021. Oh, did you suppose we have been speaking a couple of completely different arraignment?