Latest news with #Dimon
Yahoo
15 minutes ago
- Business
- Yahoo
Wells Fargo Profit Rises After Lifting of Asset Cap
Wells Fargo said its profit rose in the second quarter but dimmed its net interest income outlook for the year. Net income was up 12% at $5.49 billion. That amounted to $1.60 a share, above analyst estimates of $1.41. Revenue was 1% higher at $20.82 billion. Trump Executive Order to Help Open Up 401(k)s to Private Markets Forget TACO. Trump Is Winning His Trade War. Trump Effect Starts to Show Up in Economy Dimon Defends Fed Independence After Trump Attacks Inflation Picks Up to 2.7% as Tariffs Start to Seep Into Prices The bank reported a decline in net interest income, which reflects the difference between what banks earn on loans and pay out to depositors. That has been under pressure since the Fed started to raise interest rates to curb inflation in 2022. The bank said it expects net interest income for the year to be roughly in line with 2024, compared with previous estimates for a 1% to 3% increase. Its stock was down about 2% in pre-market trading. Growth in fee-based businesses lifted noninterest income 4% in the second quarter from a year earlier. This was the first quarter in which Wells was free from the asset cap that the Federal Reserve had put in place as a punishment for a scandal involving the creation of millions of fake customer accounts. The Fed lifted the asset cap in early June, a few weeks before the quarter ended. Without the cap, Wells is for the first time in seven years able to grow beyond around $2 trillion in assets. The bank plans to grow key businesses such as its investment bank and branded credit cards. Write to Gina Heeb at Tesla's Top North American Sales Executive Leaves Amid Slump 'Trump Accounts' for Kids Come With $1,000—and Tax Complications BlackRock Shares Tumble After Big Client Redemption Blunts Quarterly Results New Inflation Figures Sober Stock and Bond Markets Aquarian Nears Deal for U.S. Insurer Brighthouse Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Business
- Yahoo
BlackRock's Assets Surge Past $12 Trillion
BlackRock has become the world's first $12 trillion money manager. The investment firm's assets rose to a record $12.53 trillion in the second quarter, buoyed by record-high U.S. stock prices and $68 billion of net client inflows. That's up 18% from a year ago. Trump Executive Order to Help Open Up 401(k)s to Private Markets Forget TACO. Trump Is Winning His Trade War. Trump Effect Starts to Show Up in Economy Dimon Defends Fed Independence After Trump Attacks Inflation Picks Up to 2.7% as Tariffs Start to Seep Into Prices Net income rose 6.5% to $1.59 billion from $1.5 billion in the year earlier period. Excluding certain one-time expenses, BlackRock earned $12.05 a share in the most-recent quarter. On that basis, the company's profits beat the average estimate of $10.78 from analysts polled by FactSet. BlackRock's fee revenue is growing in part due to a major push into private-market assets. The money manager closed its acquisition of private credit firm HPS Investment Partners on July 1, just after the end of the quarter. 'Our recent closing of HPS will help us build even more with clients as we head into our seasonally strongest second half of the year,' Larry Fink, BlackRock's chairman and CEO, said in a statement. 'These are just the early days in our next phase of even stronger growth.' Revenue rose 13% to $5.42 billion. Analysts had expected $5.45 billion. Write to Jack Pitcher at Tesla's Top North American Sales Executive Leaves Amid Slump 'Trump Accounts' for Kids Come With $1,000—and Tax Complications BlackRock Shares Tumble After Big Client Redemption Blunts Quarterly Results New Inflation Figures Sober Stock and Bond Markets Aquarian Nears Deal for U.S. Insurer Brighthouse
New York Times
8 hours ago
- Business
- New York Times
Has Private Credit Peaked? Dimon Warns It May Have.
Andrew here. I made a cameo at the live taping of the 'Acquired' podcast at Radio City Music Hall on Tuesday, where Jamie Dimon of JPMorgan Chase was quizzed about his remarkable history at the banking giant. But what you should pay attention to are the comments Dimon made about the stock market — 'asset prices are rather high,' he said — and his concerns about private credit. More on that below. We're also taking a look at what Tuesday's data on consumer prices means for the Fed, at Zohran Mamdani's meeting with top New York C.E.O.s and at the crypto industry's continued relief from Washington. JPMorgan's private-credit worries JPMorgan Chase's C.E.O., Jamie Dimon, has been fairly consistently skeptical when it comes to private credit, the nontraditional and less-regulated lending business that has been among Wall Street's hottest activities in recent years. He kept up that concern on Tuesday, warning that such lending might be set for a decline. But he wouldn't completely shut the door on buying a provider of such loans as part of an effort to get back into the sector. 'You may have seen peak private credit,' Dimon told analysts on JPMorgan's earnings call with analysts on Tuesday, with the caveat, 'I don't know that.' When pressed by Mike Mayo, a banking analyst at Wells Fargo, he added: 'Well, I've mentioned that credit spreads are very low. It's grown dramatically over time, and you have to pay up a lot for it.' In other words, private-credit firms are currently accepting relatively little return in exchange for taking on risk, and the industry has grown significantly in the past several years. At a taping of the 'Acquired' podcast at Radio City Music Hall later in the day, Dimon called private credit 'one place that people worry has unknown leverage.' Want all of The Times? Subscribe.
New York Post
a day ago
- Business
- New York Post
JPMorgan's Jamie Dimon, Wall Street bigs snub Zohran Mamdani meeting
JPMorgan CEO Jamie Dimon and other Wall Street titans were planning to skip a widely anticipated Tuesday meeting with hard-left New York City mayoral candidate Zohran Mamdani, The Post has learned. The 33-year-old socialist firebrand, who handily defeated Andrew Cuomo in the Democratic primary on June 24, was slated to attend meetings on Tuesday and Wednesday arranged by Partnership for NYC — a powerful group whose members include the city's biggest banks, law firms and corporations. But Dimon snubbed the Israel-bashing, Ugandan-born firebrand and his bid to schmooze with the city's business bigwigs and soothe their concerns. Advertisement 3 Mamdani has been making an outreach to NYC business bigwigs via renowned power broker Kathlyn Wylde. Andrew Schwartz / The 69-year-old Dimon — who branded Mamdani a 'Marxist' at an event in Ireland on Thursday — had an unspecified scheduling 'conflict,' accoridng to the bank. 'He had other commitments and was unable to attend,' a JPMorgan spokesperson told The Post. According to sources familiar with the matter, a number of other Wall Street hotshots stayed away, too — sending non-executive underlings in their place. Advertisement 'Everyone is just in listening mode,' joked one banking bigwig. Goldman Sachs CEO David Solomon, Bank of America's Brian Moynihan, and Citi boss Jane Fraser did not plan to take part, sources said. The insiders pointed to the firms' all having quarterly results coming out on Tuesday and Wednesday. BofA is headquartered in Charlotte, NC and, arguably, more shielded from any prospective Mamdani administration. Advertisement 3 JPMorgan CEO Jamie Dimon lashed out at fellow Democrats over their obsession with DEI policies, labeling them 'idiots.' REUTERS The Democrat candidate wants to freeze rents and hike taxes to bankroll free childcare and free buses, as well as create government-run grocery stores to battle rising food prices. 'That's the same ideological mush that means nothing in the real world,' Dimon told Thursday's conference organized by the Irish foreign ministry in Dublin. The long-serving chief executive also used the powwow to take pot shots at the Democratic Party. Advertisement Dimon, who has long been rumored to have political ambitions of his own and was once floated as a possible Treasury Secretary, slammed his fellow Democrats for their obsession with divisive DEI policies. 3 Insiders said BofA CEO Brian Moynihan is currently in Charlotte, North Carolina, to prepare for the bank's quarterly results on Wednesday. REUTERS 'I have a lot of friends who are Democrats, and they're idiots. I always say they have big hearts and little brains,' the plain-speaking banker told the audience in Dublin. 'They do not understand how the real world works. Almost every single policy rolled out failed.' Banking regulations have been a matter of concern for the JPMorgan CEO for years. In October, he lashed out at the Biden administration over its anti-business stance and used his annual shareholder letter in April to accuse its officials of stifling growth with 'blue tape.' Earlier this year, JPMorgan and several other Wall Street banks scrubbed DEI language from their websites soon after President Trump took office,
Yahoo
a day ago
- Business
- Yahoo
Factbox-JPMorgan CEO Dimon's comments highlight steady caution on US economy
By Niket Nishant (Reuters) -JPMorgan Chase CEO Jamie Dimon has maintained a cautious stance on the U.S. economy for several quarters now and said on Tuesday accurate forecasts are a challenge because key shifts are apparent only in hindsight. While the longtime CEO expressed optimism about the health of the consumer, he reiterated concerns about tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices. The bank remains measured when making projections, Dimon said, citing past crises that caught many off guard. "Our forecasting of the future is very complex. You probably heard me say that sometimes it's a complete waste of time. Most people cannot really pick inflection points," he said. Earlier in the year, Dimon had cautioned about the risk of recession, the possibility of credit spreads widening and inflation rising. His comments reflect a broader challenge facing policymakers and markets. While precise economic projections are often challenging because of backward-looking data that is frequently revised, unpredictable factors can throw even seasoned observers off course. A December study by the Federal Reserve Bank of St. Louis examined the Blue Chip Survey of Professional Forecasters, an average of projections from about 50 economists, from 1993 to 2024, and found that actual GDP growth came within the forecast range just 44% of the time. Here is a timeline of Dimon's public comments on the U.S. economy over the past few quarters: Date Comments April 2024 The U.S. economic boom is "unbelievable", Dimon said at an event. "Even if we go into recession, the consumer's still in good shape." July 2024 "While market valuations and credit spreads seem to reflect a rather benign economic outlook, we continue to be vigilant about potential tail risks," he said, citing geopolitical risks, large fiscal deficits and other factors. October 2024 "While inflation is slowing and the U.S. economy remains resilient, several critical issues remain, including large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world," Dimon said. January 2025 "Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business," he said, while repeating his warnings about government spending and geopolitical risks. "Inflation may persist for some time." April 2025 "We are likely to see inflationary outcomes ... Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," Dimon wrote in his annual letter to shareholders. April 2025 He reiterated his warning of economic turbulence, noting that while tax reform and deregulation could offer a boost, tariffs, trade tensions and persistent inflation may pose significant headwinds. He also highlighted that the bank's economists estimate a 50% chance of a U.S. recession this year. July 2025 Dimon said the financial market was underestimating the possibility of U.S. interest rates climbing higher, a prospect he described as a "cause for concern". The administration's tariffs, migration policies and budget deficit could lead to price pressures, he said. July 2025 "The U.S. economy remained resilient in the quarter. The finalization of tax reform and potential deregulation are positive for the economic outlook, however, significant risks persist," Dimon said. Source: Reuters stories, earnings statements Sign in to access your portfolio
