Latest news with #mismanagement
Daily Mail
3 days ago
- Business
- Daily Mail
Dimon warns of threat that is bigger than China
By Published: Updated: JPMorgan Chase CEO Jamie Dimon has sounded the alarm about the 'enemy within' the US, which he warned is a bigger threat than China. Dimon claims America is suffering from a worrying 'mismanagement' issue which has the potential to 'kill us'. 'China is a potential adversary. They're doing a lot of things well, they have a lot of problems,' he said at the Reagan National Economic Forum on Friday. 'But what I really worry about is us. Can we get our own act together - our own values, our own capability, our own management?' Dimon, the top boss of America's biggest bank, cautioned that the 'mismanagement' that occurs at all levels of government could be the biggest catalyst for the nation's economic demise. 'The amount of mismanagement is extraordinary - by state, by city, for pensions, and that stuff is going to kill us,' the billionaire banker told the forum. The banking expert predicted the US could grow 3 percent per year if leaders fixed the issues surrounding permitting, taxation, regulations, immigration, health care, and schools in the inner city. He added: 'We have to get our act together. We have to do it very quickly.' Dimon also claimed the US should be taxing carried interest, a loophole that has allowed private market investors to benefit from lower taxes. 'We absolutely should be taxing carried interest,' he said, adding to President Donald Trump's recent campaign to close the provision long-cherished by investors. He suggested the revenue can be used to double income tax credits for individuals with children, adding that the money will flow directly into the communities. Carry - which refers to the part of private fund managers' compensation tied to profits generated - is currently taxed as a long-term capital gain, allowing fund managers to pay lower taxes compared to ordinary income. Closing the loophole has been a bipartisan issue for over a decade, with successive administrations promising to close the loophole. A 2021 Congressional Budget Office estimates that doing so would raise tax revenue by $14 billion over 10 years. Private equity and hedge funds have opposed such legislation, saying it could potentially hurt small businesses as well as institutional investors, such as endowments, foundations and pension funds. Industry groups in February had opposed Trump's plan to close the lucrative tax workaround. Dimon, 69, has run JPMorgan Chase, the largest US bank, for more than 19 years, outlasting many other CEOs, and is one of the most prominent voices in corporate America . His remarks at Friday's forum come just days after he delivered a sobering assessment of the US economy and warned the true fallout from Trump's sweeping tariff policy has yet to be felt. During dramatic appearance at JPMorgan Chase's annual investor day, Dimon said behind the scenes of a soaring stock market lies a deep and under-appreciated risk. He is known for his measured analysis but he believes rising costs, uncertain trade flows, and an American economy perched precariously atop artificially inflated asset prices make for an uncertain time. 'There's an extraordinary amount of complacency,' the nation's most powerful banker said on May 19. 'The last time the country saw 10 percent tariffs on all trading partners was 1971.' Dimon pulled no punches as he described Trump's tariff strategy as 'pretty extreme,' even in its scaled-back form following an April 2 announcement that placed most tariffs on a temporary 90-day pause. A federal appeals court temporarily reinstated the most sweeping of Trump's tariffs on Thursday - a day after a US trade court ruled the president had exceeded his authority in imposing the duties and ordered an immediate block on them. While the exact level of tariffs that will remain on trading partners is unknown, traders expect the levies to persist in some form. White House trade adviser Peter Navarro said on Thursday that the Trump administration will seek to enact tariffs through other means if it ultimately loses the court fights over its trade policy. Investors remain concerned that tariffs will slow growth and reignite inflation , though deals to drop tariff increases on China and the European Union as they negotiate trading terms have reduced pessimism over the US economic outlook.
Daily Mail
3 days ago
- Business
- Daily Mail
America's top banker Jamie Dimon issues chilling warning about the country's 'enemy within'
JPMorgan Chase CEO Jamie Dimon has sounded the alarm about the 'enemy within' the US, which he warned is a bigger threat than China. Dimon claims America is suffering from a worrying 'mismanagement' issue which has the potential to 'kill us'. 'China is a potential adversary. They're doing a lot of things well, they have a lot of problems,' he said at the Reagan National Economic Forum on Friday. 'But what I really worry about is us. Can we get our own act together - our own values, our own capability, our own management?' Dimon, the top boss of America's biggest bank, cautioned that the 'mismanagement' that occurs at all levels of government could be the biggest catalyst for the nation's economic demise. 'The amount of mismanagement is extraordinary - by state, by city, for pensions, and that stuff is going to kill us,' the billionaire banker told the forum. The banking expert predicted the US could grow 3 percent per year if leaders fixed the issues surrounding permitting, taxation, regulations, immigration, health care, and schools in the inner city. He added: 'We have to get our act together. We have to do it very quickly.' Dimon, appearing at the Reagan National Economic Forum on Friday, (pictured) claims America is suffering from a worrying 'mismanagement' issue and has urged the country to 'get our own act together' Dimon also claimed the US should be taxing carried interest, a loophole that has allowed private market investors to benefit from lower taxes. 'We absolutely should be taxing carried interest,' he said, adding to President Donald Trump 's recent campaign to close the provision long-cherished by investors. He suggested the revenue can be used to double income tax credits for individuals with children, adding that the money will flow directly into the communities. Carry - which refers to the part of private fund managers' compensation tied to profits generated - is currently taxed as a long-term capital gain, allowing fund managers to pay lower taxes compared to ordinary income. Closing the loophole has been a bipartisan issue for over a decade, with successive administrations promising to close the loophole. A 2021 Congressional Budget Office estimates that doing so would raise tax revenue by $14 billion over 10 years. Private equity and hedge funds have opposed such legislation, saying it could potentially hurt small businesses as well as institutional investors, such as endowments, foundations and pension funds. Industry groups in February had opposed Trump's plan to close the lucrative tax workaround. Dimon, 69, has run JPMorgan Chase, the largest US bank, for more than 19 years, outlasting many other CEOs, and is one of the most prominent voices in corporate America. His remarks at Friday's forum come just days after he delivered a sobering assessment of the US economy and warned the true fallout from Trump's sweeping tariff policy has yet to be felt. During dramatic appearance at JPMorgan Chase's annual investor day, Dimon said behind the scenes of a soaring stock market lies a deep and under-appreciated risk. He is known for his measured analysis but he believes rising costs, uncertain trade flows, and an American economy perched precariously atop artificially inflated asset prices make for an uncertain time. 'There's an extraordinary amount of complacency,' the nation's most powerful banker said on May 19. 'The last time the country saw 10 percent tariffs on all trading partners was 1971.' Dimon pulled no punches as he described Trump's tariff strategy as 'pretty extreme,' even in its scaled-back form following an April 2 announcement that placed most tariffs on a temporary 90-day pause. A federal appeals court temporarily reinstated the most sweeping of Trump's tariffs on Thursday - a day after a US trade court ruled the president had exceeded his authority in imposing the duties and ordered an immediate block on them. While the exact level of tariffs that will remain on trading partners is unknown, traders expect the levies to persist in some form. White House trade adviser Peter Navarro said on Thursday that the Trump administration will seek to enact tariffs through other means if it ultimately loses the court fights over its trade policy. Investors remain concerned that tariffs will slow growth and reignite inflation, though deals to drop tariff increases on China and the European Union as they negotiate trading terms have reduced pessimism over the US economic outlook.
CNN
3 days ago
- Business
- CNN
Jamie Dimon says China isn't America's biggest threat. It's ‘the enemy within'
JPMorgan Chase CEO Jamie Dimon sounded a warning Friday on the fractious US relationship with China — and on 'the enemy within.' 'China is a potential adversary — they're doing a lot of things well, they have a lot of problems,' Dimon said at the Reagan National Economic Forum. 'But what I really worry about is us. Can we get our own act together — our own values, our own capability, our own management.' Dimon's comments come as President Donald Trump's tarrifs have sharply cut into trade between the United States and China, the world's two biggest economies. Trump's trade policy has whipsawed through different tariff levels and has also been caught up in court decisions, adding more uncertainty to what has become a testy relationship affecting economies around the world. Dimon said he agreed with Berkshire Hathaway CEO Warren Buffet that America is 'normalcy resilient' but that this time is different. 'We have to get our act together,' Dimon said. 'We have to do it very quickly.' He added that the United States has a 'mismanagement' issue. He called on fixing permitting, regulations, immigration, taxation, inner city school and the health care system. If those things are fixed, Dimon said, the country could grow 3% a year. 'What you heard today on stage was the amount of mismanagement is extraordinary. By state, by city, for pensions … and that stuff is going to kill us,' Dimon said, referencing comments made by earlier panelists at the forum. The United States government deficit stood at about $2 trillion in 2024, or roughly 7% of gross domestic product, according to a June 2024 report by the Congressional Budget Office. If the country enters a recession, 'that 7% will be 10%,' he added. This is a developing story and will be updated
The Guardian
20-05-2025
- The Guardian
Report into Kids Company was ‘irrational', ‘unfair' and ‘one-sided', court rules
A watchdog report into Kids Company, the children's charity set up by the late Camila Batmanghelidjh, was 'irrational', 'unfair' and 'one-sided' in key criticisms it made of the way the charity was managed, a court has ruled. Nevertheless, although the Charity Commission admitted it made errors and would have to rewrite parts of its inquiry report, published in 2022, the judge refused to quash it, and upheld other criticisms the watchdog made of Kids Company. Although both sides said the ruling vindicated their positions, a separate ruling on costs by the judge, Mr Justice Sheldon, said: 'In substantive terms, it seems to me that there was no overall winner or loser in this case.' Alex Goodman KC, the lead counsel for the supporters of Kids Company, who brought the legal challenge, said: 'We are hugely relieved and pleased with this judgment, which provides long-overdue vindication for Kids Company. This robust decision addresses fundamental wrongs and restores fairness and accuracy to the narrative.' The Charity Commission insisted the ruling had largely vindicated its inquiry report, saying: 'Today's high court judgment has upheld our finding of mismanagement of the charity's finances and has confirmed that it was based on 'ample evidence'.' Kids Company was one of the UK's best-known charities when it collapsed in 2015 after unfounded media reports of abuse. It had been praised for its pioneering work in London, providing practical, emotional and educational support for thousands of severely traumatised children caught up in poverty and gang violence. Batmanghelidjh, its charismatic founder, subsequently endured years of political and media vilification before being dramatically exonerated in a high court ruling in 2021 that praised her achievements and paid tribute to the charity's trustees. The Charity Commission's inquiry report into the collapse of Kids Company published a year later caused surprise when it delivered a formal finding of 'mismanagement in the administration of the charity', triggering the legal challenge by Batmanghelidgh that led to Tuesday's ruling. Lawyers for Kids Company, whose former clinical director Michael-Karim Kerman continued the challenge on behalf of Batmanghelidjh after her death in 2024, argued the commission's report was vague and superficial, ignored positive findings of the previous year's high court ruling, and 'perpetuated stigma' around the charity. Sheldon ruled the commission's criticism of Kids Company's management of payments to children in its care amounted to 'innuendo' and was 'extremely unfair'. He also concluded that a separate criticism of Kids Company's trustees' running of the charity was 'irrational'. Sheldon said: 'Although the commission has a discretion as to what to include in the report of a statutory inquiry, that discretion must be exercised lawfully. Creating such extreme unfairness would not be lawful: in public law terms, it is irrational.' Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion But he upheld the commission's conclusions on other aspects of the management of the charity, including its handling of client records, claims it made about the number of beneficiaries it supported, and its handling of a payroll issue. He rejected allegations the commission had predetermined the outcome of its inquiry. He said: 'I do not consider that the report, looked at as a whole, was irrational. The fact that the report contains errors, and even a small number of irrational findings or observations, does not mean that the overall document is irrational.' Kerman said he would continue to 'carry on the fight for justice for all those who have been stigmatised by the untruthful narrative [about Kids Company] created by the media and the actions of various government bodies since the charity's closure'. He said: 'Since Kids Company's traumatic closure in August 2015 there has been a concerted attempt to denounce unfairly the charity and all who were touched by it, whether in the capacity of staff, volunteer, supporter or one of the thousands of vulnerable young children and families the charity served for nearly 20 years.'
CBC
19-05-2025
- Business
- CBC
Audit shows how promotions and pay bumps contributed to TVDSB's $16M deficit
Social Sharing An investigation into the Thames Valley District School Board's finances found instances of mismanagement, including promotions and executive pay raises without trustee approval. The audit into southwestern Ontario's largest school board was done by Pricewaterhouse Coopers (PWC) over the course of 10 month, finishing in mid-April. It was quietly posted to the province's website. The Thames Valley District School Board (TVDSB) currently faces a $16-million deficit. In April, shortly after the audit was finished, the province appointed a supervisor to oversee the board, and took authority away from trustees. Those decisions were made after it was discovered that senior administrators spent $40,000 on a retreat to Toronto last fall. The director of education, Mark Fisher, resigned six months later and numerous senior executives remain on paid leave. PWC's 142-page audit details how TVDSB didn't comply with its own compensation rules that would become the "underlying reasons for its deteriorating financial position." It identified a total of seven instances of non-compliance, including two where the board didn't abide by its own policies and procedures, and five violations of the Ministry of Education's approved compensation rules for senior administration. The report found Fisher promoted the board's General Counsel, Ali Chahbar into a superintendent role, without the board's approval during the 2022-23 school year. The position came with a $24,000 pay upgrade. In July 2024, Fisher promoted a superintendent to an associate director of education position with a $40,000 salary bump, again without board approval. The individual returned to a superintendent role a few months later in October but continued to ear $239,000, due to a clause in the contract. The superintendent is not named in the report, however, CBC has previously reported that superintendent Andrew Canham was an associate director during that time. He is on a paid leave. Chahbar also resigned as chair of the London Police Service Board earlier this month, citing health reasons. Wages for the director of education, superintendent, and executive officer roles rose by 8.8 per cent, 27.9 per cent and 17.9 per cent, respectively, the audit found. COVID costs Other infractions included two new executive hires who were paid more than they should have been, the audit concluded. When the pandemic hit, Fisher, superintendents and executive officers received a 10 per cent stipend for the increased scope of their work, despite a prohibition on new compensation elements at the time. "These stipends ranged between $15,526 to $23,950 annually, per executive, for a period of 20 months," the report said, adding trustees approved the stipend after seeking externa legal advice. TVDSB went from having a $3.5 million surplus in 2020-21 to an in-year deficit of $17.32 million in 2023-24, the report said. The board's financial situation is expected to improve in the 2024-25 school year as the deficit drops to $16.8 million, it added. 'There needs to be a refocus' union head says Craig Smith, president of the Thames Valley local of the Elementary Teachers' Federation of Ontario (ETFO), said this audit should serve as a lesson in rethinking priorities that put the focus on supporting students and teachers. "I think we've drifted a bit away from that and we need to use this as an opportunity," Smith said Monday. "This isn't just one trip to Toronto that caused this. This has been a situation that's been in the making for a number of years. I think as tough as it's going to be for the next year or two for the, board, it's very critical that it happens and it happens right." Staff absenteeism a problem The audit also found the board's deficit was not made any better by the high level of staff absenteeism that led to higher costs for supply staff. PWC also noted the over-projected enrolment rates that resulted in $3.5 million excess spending for teachers in 2023-24 and $2.4 million in 2024-25. The audit also found increased spending on technology and cybersecurity initiatives. "The board was unable to adjust its expenses promptly when the financial pressures became apparent during the revised estimates period and later in the year," the report said. "Consequently, TVDSB had hired additional teachers and incurred other expenses that could not be retracted due to contractual obligations. To mitigate this in the future, TVDSB plans to adopt a more conservative approach to enrolment forecasting, relying on actual registrations without upward adjustments for development or migration." Report finds cost-cutting measures The board has already implemented cost cutting measures to reduce the 2024-25 deficit between $15.9 million to $13.7 million, depending on their success. These include: a reduction in bus monitoring staff procurement savings educational assistant return-to-work programs transitioning from in-person to online summer school merging schools reviewing the door-to-door transportation model ending Beal's transportation program While it's important to make certain cuts, they shouldn't be made just for the sake of saving money, Smith said, adding that the board instead needs to look at how these cuts are impacting services for students. "There's also the management culture of the board, it's very top-heavy in terms of administration and that needs to be looked at seriously because there are fixed costs the board can't avoid, but there are some things they need to do."
