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BUSINESS Saturday 15 July 2017
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JPMorgan CEO shifts topic to politics from financial results

By KEN SWEET would directly benefit
AP Business Writer JPMorgan’s bottom line,
NEW YORK (AP) — After and infrastructure spend-
JPMorgan Chase posted ing would add to U.S. gross
a record $7 billion quar- domestic product. There
terly profit, the last thing a is also talk about trimming
contentious Jamie Dimon back some of the strict
wanted to talk about Fri- regulations put in place fol-
day was his company’s lowing the financial crisis
earnings. that bank CEOs like Dimon
Instead, the CEO of the na- have argued are restricting
tion’s largest bank vented the ability of banks to lend
his irritation with politicians money. Whether those reg-
and what he called grid- ulations are really restrict-
lock that’s preventing the ing lending is a topic of de-
economy from doing even bate. Nearly all banks are
better. Dimon, a mem- making more loans, includ-
ber of President Donald ing JPMorgan Chase, and
Trump’s business advisory bank profits are up.
council, has a reputation “What’s the evidence that
for speaking with little to regulations are seriously im-
no filter. He’s complained peding the banking indus-
in the past that U.S. policy- try or any other industry?”
makers spend too much JPMorgan Chase CEO Jamie Dimon speaks on Capitol Hill in Washington. During calls with reporters said Dean Baker, an econ-
and Wall Street analysts on Friday, July 14, 2017, Dimon vented his irritation with politicians and
time arguing rather than the news media, arguing that the nation is spending too much time bickering instead of solving omist with the left-leaning
improving the economy. real issues. Center for Economic and
The U.S. economy has (AP Photo/J. Scott Applewhite) Policy Research.
been expanding at less Baker said one reason for
than 2 percent a year since citizen traveling around the cans.” does have input on what the gridlock is the inability
the Great Recession, which world ... listening to the stu- As head of the nation’s the White House’s priorities of Republicans to coalesce
is below the typical growth pid (expletive) we have to biggest bank, Dimon has should be for big compa- around a unified agenda.
after an economic down- deal with in this country,” a big stake in how Wash- nies like JPMorgan. For example, some want
turn. Dimon said growth he said in a call. “At one ington operates and how Republicans who control tax cuts to stimulate growth,
would be higher if Washing- point we all have to get our the U.S. economy performs. of both houses of Congress but other Republicans are
ton gridlock would ease. act together or we won’t And while Trump’s business and the White House have worried about deficits that
“It’s almost an embarrass- do what we’re supposed to advisory council cannot proposed cutting corpo- could rise if taxes were cut
ment being an American do for the average Ameri- make policy decisions, it rate income taxes, which too sharply.q

Wells Fargo’s 2Q profit rises along with interest rates

By The Associated Press interest because of rising billion from $63 billion one
Wells Fargo said its profit interest rates, which let the year ago. But Wells Fargo
edged higher in the sec- banks charge more money made fewer auto loans be-
ond quarter as the bank for lending. The Federal cause it tightened its lend-
got a boost from rising inter- Reserve has raised interest ing criteria.
est rates and the planned rates three times since De- Wells Fargo reported $22.17
sale of its insurance service cember. billion in revenue, down
business. However, JPMorgan Chase slightly from last year. Ana-
The San Francisco-based said it won’t make as much lysts surveyed expected
bank said its profit grew 5 income from interest as it $22.47 billion.
percent to $5.8 billion, or previously expected. That The bank said its check-
$1.07 per share. helped send shares of all ing account customers in-
That was more than the three companies lower. creased 0.7 percent. The
$1.01 per share expected Wells Fargo fell 73 cents, or bank is still dealing with the
by analysts, according to 1.3 percent, to $54.87. fallout from a sales prac-
FactSet. The company reported a tices scandal that became
The Federal Reserve has gain of 4 cents per share public in September.
raised interest rates three from the sale of the insur- Regulators fined Wells
times since December, ance business to USI Insur- Fargo $185 million in Sep-
which lets banks charge ance Services, which Wells tember for opening more
more money for lending, Fargo announced in late than 2 million accounts
and Wells Fargo said its net June. On Friday Wells Fargo fraudulently as employ-
interest income climbed 6 said it will sell its shareholder ees tried to meet aggres-
percent to $12.5 billion. services business to Equiniti sive sales goals. Afterward,
Wells Fargo, JPMorgan Group for $227 million. CEO John Stumpf stepped
and Citigroup all disclosed Wells Fargo is the largest down and the head of the
their second-quarter re- U.S. mortgage lender, and consumer banking division,
sults Friday, and said they it said originations of mort- A man uses a Wells Fargo ATM in Charlotte, N.C. Wells Fargo & Carrie Tolstedt, moved up
collected more money on gage loans dipped to $56 Co. reported earnings, Friday, July 14, 2017. her retirement.q
(AP Photo/Chuck Burton)