Sumary of 5 things Jamie Dimon said in his annual JPMorgan shareholders letter:
- Having now successfully steered JPMorgan Chase — America’s largest bank by assets — through two recessions, Dimon is viewed as a leader in the banking and finance communities..
- He also said that a multiyear booming economy could justify current high equity valuations, with investors potentially pricing in big economic growth and excess liquidity finding its way into the market..
- While it might sound like a lot, shadow banking has grown more, with total private direct credit jumping from $7.6 trillion in 2000 to $18.4 trillion in 2020..
- The size of payments companies has grown to $1.2 trillion, and the size of private and public fintech companies is now $0.8 trillion..
- While Dimon acknowledges that the new Dodd-Frank regulatory framework put into place following the Great Recession succeeded in keeping banks healthy through the brunt of the coronavirus pandemic, he still sees major issues with it..
- One issue he sees is with a Dodd-Frank rule called the liquidity coverage ratio (LCR), which made more stringent rules around liquidity and, according to Dimon, effectively prevents larger banks from lending out all of their deposits….