The president and CEO of JP Morgan Chase, Jamie Dimon, said in his annual letter to investors that "the social needs of citizens are not being met", although he also made a strong defense of capitalism and lowering taxes.
"40% of US workers earn less than $ 15 an hour and about 5% of full-time employees earn the minimum wage or less, which is certainly not a living wage," said the director of the largest United States bank by assets.
Also, Dimon recalled that "40% of Americans do not have $ 400 to cover unexpected expenses, such as medical bills or car repairs," and stressed that "more than 28 million Americans do not have health insurance and, Surprisingly, 25% of those who qualify for federal aid programs do not receive any help. "
However, Dimon applauded the Donald Trump tax reform of 2017, which meant a net profit of $ 3,700 more for the entity last year, although the bank's top executive said that this extra revenue will be reduced by competition among the companies in the next years.
Therefore, this positive money from 2018 was used in the short term to increase investments in technology, new venues and bankers, increased salaries, greater investments in philanthropy and loans.
Dimon's letter, a must-read for investors like magnate Warren Buffett, talked about the situation of the US financial system and although he criticized part of the reforms that were made in the wake of the 2008 crisis, he assured that these had given sustainability to the system.
"It is appropriate for legislators to examine areas of the regulatory framework that are excessive, overlapping, inefficient or duplicative," said the banker, who urged to review the growing "shadow" banking system and the mortgage system.
"Banks are under constant scrutiny, including political pressure, to lend money (do they remember 'subprime' mortgages?) Even when they should not," reads the letter.
Dimon also referred to numerous technological challenges facing banks, and specifically his, such as adapting their services to the "cloud" or the adoption of artificial intelligence for many of their services, which will imply the repositioning of some of your staff.
In addition, the CEO made an analysis of the macroeconomic situation, recognizing the slowdown in economic growth for this year, although stating that the economic data is still good, despite global insecurities or geopolitical events such as "brexit" or uncertainty around the global leadership of the United States.
However, Dimon said the bank is "ready" for a recession, although it does not "predict" that it will happen soon.