Jamie Dimon, President and CEO of JPMorgan Chase, speaking on CNBC’s “Squawk Box” at the World Economic Forum Annual Meeting in Davos, Switzerland, onJan 17, 2024.
Adam Galici|CNBC
JPMorgan Chase CEO Jamie Dimon isn’t fretted about the included competitors from a bulked-up Capital One if its $353 billion takeover of Discover Financial gets authorized.
“My view is, let them compete,” Dimon stated. “Let them try, and if we think it’s unfair, we’ll complain about that.”
Dimon, speaking with CNBC’s Leslie Picker at a Miami conference, acknowledged that if regulators authorize the Capital One-Discover offer, his bank will be eclipsed as the country’s most significant charge card loan provider.
But that didn’t stop him from applauding Capital One CEO Richard Fairbank, who he credited with shocking the card market in a manner that eventually led Dimon to ending up being CEO of a predecessor company to JPMorgan more than 20 years back.
“Richard is why I’m here,” Dimon stated.
About the deal, he included, “I’m not worried about it really, but we do track everything he does.”
Last week, Capital One revealed the most significant proposed merger of the year, one that might change the trillion-dollar charge card market. By getting Discover, Fairbank is both expanding as a loan provider and enhancing the tiniest of the payments networks after Visa, Mastercard and American Express
“The charge card company â $ ¦ they’ll be larger and [have] more scale,” Dimon stated. “They’re very good at it. I have enormous respect for Richard Fairbank and Capital One.”
It’s uncertain if Capital One can develop a real option to the dominant card networks with this offer, Dimon stated.
He included that Capital One will have an “unfair advantage versus us” in debit payments, owing to the truth that legislation referred to as the Durbin Amendment caps debit costs for big banks, however not Discover or American Express.
“Of course, I have a problem with that,” Dimon stated. “You know, like why should they be allowed to price debit different than we price debit just because of a law that was passed?”
More broadly, Dimon stated he likewise preferred permitting little banks to combine. A wave of market combination has actually been anticipated after the tumult of in 2015’s local banking crisis, however just a drip of smaller sized offers have actually occurred up until now as executives are uncertain if they can pass regulative muster. Â
The most significant concern staying about the Capital One offer is whether regulators will authorize it. More than a lots Democrat legislators consisting ofSen Elizabeth Warren, D-Mass, signed a letter to the Federal Reserve and the Office of the Comptroller of the Currency on Sunday advising them to obstruct the arrangement.
“To protect consumers and financial stability, we urge you to block this merger and strengthen your proposed policy statement to prevent harmful deals in the future,” they composed.
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