JPMorgan's Jamie Dimon warns business-friendly Texas over laws aimed at Wall Street firms
The JPMorgan Chase CEO urged the Lone Star State not to risk hurting its reputation by going after major firms
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JPMorgan Chase CEO Jamie Dimon praised Texas this week for creating a business-friendly environment but warned the state risks tarnishing that reputation with laws aimed at punishing major financial firms over how they choose to operate.
"Texas is a wonderful, welcoming place," Dimon told Bloomberg in an interview Wednesday. "The government's done a magnificent job, and that's why you have the growth, why unemployment is so low, why people are moving companies and jobs here.
Jamie Dimon, chairman and CEO of JPMorgan Chase, speaks during the Institute of International Finance annual membership meeting in Washington, D.C., on Oct. 13, 2022. (Ting Shen/Bloomberg via Getty Images / Getty Images)
"I think it's a mistake to damage it even a little way."
Texas enacted a pair of state laws in 2021 restricting public contracts with any financial institutions that "boycott" energy companies or "discriminate" against the firearm industry.
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"We don't discriminate or boycott anybody, neither for political affiliation nor for anything else," Dimon said in the interview. "We do make risk, legal, credit and reputational decisions, which is our legal right — and my obligation as chairman and CEO of JPMorgan Chase."
Texas Attorney General Ken Paxton leaves the U.S. Supreme Court following arguments over a challenge to a Texas law that bans abortion after six weeks on Nov. 1, 2021. (REUTERS/Evelyn Hockstein / Reuters Photos)
Last month, Texas Attorney General Ken Paxton's office launched a review into the corporate policies of several major Wall Street firms, including JPMorgan, Bank of America and Wells Fargo to determine whether the institutions violated the energy law due to their membership in the Net Zero Alliance.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 246.25 | -3.47 | -1.39% |
| BAC | BANK OF AMERICA CORP. | 47.04 | -0.47 | -0.99% |
| WFC | WELLS FARGO & CO. | 75.28 | -0.89 | -1.17% |
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But the investigations into major firms is disrupting the municipal bond market in Texas, which localities use to build infrastructure, according to Bloomberg.
The JPMorgan Chase Tower on Park Avenue on midtown Manhattan. (Tim Clayton/Corbis via Getty Images / Getty Images)
"Some things they have to be very careful about is that their own cities, schools, hospitals all get funding from someone like us, and you want that to continue," said Dimon, who heads the largest bank in the U.S. "So, if you can't do that, it may hurt the ability to raise money in the proper kind of way."
JPMorgan Chase & Co.
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"Texas has been an unbelievable place to do business, and they've been welcoming of small businesses and large business. The governor's done an exceptional job. The cities have done a good job with infrastructure, education, taxes, all those things. And it's booming," Dimon reiterated to the outlet. "So, I urge them to be very careful to stay the welcoming place."
Shares of JPMorgan have gained over 5% this year, trailing the S&P 500's 12.5% rise.