JPMorgan Chase CEO Jamie Dimon stated Tuesday in a memo that the coronavirus disaster needs to be used to construct an financial system that gives
JPMorgan Chase CEO Jamie Dimon stated Tuesday in a memo that the coronavirus disaster needs to be used to construct an financial system that gives alternatives for “dramatically extra individuals.”
The memo, issued forward of his financial institution’s annual shareholder assembly, served as an replace to the New York-based lender’s response to the pandemic. Dimon additionally detailed the steps his agency has taken to help clients and staff because the disaster started two months in the past, in addition to his excited about returning staff to work websites.
“It’s my fervent hope that we use this disaster as a catalyst to rebuild an financial system that creates and sustains alternative for dramatically extra individuals, particularly those that have been left behind for too lengthy,” Dimon stated. “The previous few months have laid naked the truth that, even earlier than the pandemic hit, far too many individuals have been residing on the sting.”
For the reason that coronavirus pandemic took maintain within the U.S., 36.5 million individuals have filed unemployment claims, and the toll has hit lower-income staff hardest: Practically 40% of households with incomes of lower than $40,000 have reported a job loss, the Federal Reserve stated final week. Even for these with jobs, the disaster uncovered one other disparity: Whereas workplace staff have principally been in a position to work from their properties, lower-paid work is extra more likely to require in-person actions, placing these staff at higher danger of an infection.
“Sadly, low-income communities and other people of colour are being hit the toughest, exacerbating the well being and financial inequities that have been already unacceptably pronounced earlier than the virus took over,” Dimon stated.
“An inclusive financial system – in which there’s widespread entry to alternative – is a stronger, extra resilient financial system,” he added. “This disaster should function a wake-up name and a name to motion for enterprise and authorities to suppose, act and make investments for the widespread good and confront the structural obstacles which have inhibited inclusive financial development for years.”
Dimon stated he would quickly share his concepts on how the rehiring of staff and reopening of small companies may assist create a extra inclusive financial system.
As for the shareholder assembly, which was held on-line due to the pandemic, the entire financial institution’s administrators have been elected with a minimum of 84% of the vote.
In opening remarks for the occasion, Dimon — who had emergency coronary heart surgical procedure in March — stated that he was in “good well being” and comfortable to have returned to the helm of JPMorgan.
Learn the total memo right here:
An Replace on JPMorgan Chase’s Response to COVID-19
Could 19, 2020
The impacts of the COVID-19 pandemic proceed to reverberate inside our neighborhoods, workplaces and houses and all through our financial system. In my annual letter to shareholders final month, we described the actions our agency is taking to help our staff, clients and communities. Issues are altering rapidly, so I needed to replace you on our latest efforts. I additionally need to share how we’re excited about and making ready for not solely the secure re-opening of our financial system, but in addition laying the muse for an inclusive restoration that unlocks financial alternative for extra individuals.
From the outset, our precedence has been to proceed to offer uninterrupted service to our purchasers and clients, whereas supporting and offering a secure work setting for our staff and serving to these communities hit onerous by the COVID-19 pandemic.
Responding to the wants of our clients and purchasers
To assist clients who’ve advised us they’re struggling financially, we’ve made it simple to enroll in a fee help program. To this point, we’ve supplied help to over 1.5 million buyer accounts, together with delaying funds and refunding charges throughout our enterprise banking, house lending, bank card, deposit and auto lease and mortgage accounts. And, we’re rapidly and prudently placing our capital and liquidity to work to assist our purchasers – giant and small – climate the disaster, pay their staff and payments, and supply the important items and providers on which all of us rely.
Included on this, are a whole lot of 1000’s of house owners we have helped by delaying their mortgage funds for a minimum of three months. They will not be charged a late payment or penalty throughout this time. We’re additionally out there to debate extensions for a lot of clients who want extra time to get better, and upon request and if eligible, we are able to add the choice to maneuver missed funds to the tip of their mortgage time period.
In March and April, we authorised greater than $45 billion in new credit score for our purchasers impacted by COVID-19. This included greater than $6 billion to hospitals and healthcare firms, academic establishments, nonprofits and state and native governments. For instance, we labored with NewYork-Presbyterian Well being System – which has seen a major improve in in a single day sufferers because of COVID-19 – to extend their line of credit score so they may purchase important medical provides and tools and convey on further workers.
We have additionally assisted our company purchasers in elevating capital, together with many in industries which were onerous hit by the pandemic, from healthcare to journey and transportation. Yr so far, we have helped purchasers increase $664 billion in funding grade financing, and in addition supplied $104 billion of excessive yield financing.
Moreover, in the course of the first 60 days of the disaster, we prolonged $950 million in new loans for our small enterprise purchasers, comparable to Children Klub Baby Growth Facilities, which supply preschool, daycare and after college programming. The Los Angeles-based firm was in the midst of establishing a brand new location in Seattle when the disaster hit. We labored with them to speed up entry to critically wanted funds to complete building and proceed paying their 200 staff whereas they closed down and revamped their facilities to offer care for youngsters of important staff. We have additionally labored to assist as lots of our clients as doable obtain loans by means of the SBA’s Paycheck Safety Program (PPP). For instance, we helped the Jupiter Resort in Portland, Oregon keep its workforce as they transformed 81 rooms right into a shelter for homeless people with underlying well being situations or respiratory signs however who haven’t examined optimistic for COVID-19. We additionally helped the South Florida Most cancers Affiliation maintain drivers on their payroll who transport underprivileged individuals to their radiation and chemotherapy remedies.
For the reason that starting of PPP, we funded a complete of greater than $30 billion to over 250,000 companies, serving to to help greater than three million staff. The typical mortgage quantity was roughly $122,000 and half of these loans went to firms with fewer than 5 staff.
Serving to essentially the most weak in our communities
We’re utilizing data-driven options to assist a number of the hardest hit communities get by means of the pandemic – and to assist them get better when it is over. To date, this features a $250 million international enterprise and philanthropic dedication to help weak and underrepresented communities, present nonprofit companions and underserved small companies.
We all know that many small companies are vulnerable to being locked out of the assets they desperately want to remain afloat – that is why $200 million of our dedication is to assist underserved small companies and nonprofits entry low-cost capital by means of group companions. For instance, this consists of $50 million to Develop America Fund, a Group Growth Monetary Establishment, to allow them to assist small companies in underserved communities cowl bills comparable to lease and worker salaries.
We’re additionally offering $50 million in philanthropic help to nonprofits working to assist communities and other people hit hardest by this public well being disaster. For instance, we supplied help to allow the Healthcare Development Program (H-CAP) to implement new coaching applications centered on disaster care and infectious illness preparedness. Our agency has partnered with H-CAP during the last a number of years to coach staff for jobs within the healthcare sector, and now these new coaching applications will put together staff in New York Metropolis, Los Angeles, Chicago, Philadelphia and different cities throughout the U.S. to fill the scarcity of scientific care professionals wanted to handle the COVID-19 pandemic.
And we’re additionally discovering different methods we will help in our communities. For instance, we’re collaborating with Marriott and others to offer as much as $10 million price of lodge stays for healthcare professionals combating COVID-19 in the US. The initiative is offering free rooms to first responders in areas comparable to New York Metropolis, New Orleans, Chicago and Detroit.
Supporting our staff as we transfer towards re-opening our financial system
Our staff’ security and wellbeing is a prime precedence, and we have taken intensive steps to help them in the course of the disaster, together with further break day for all and increasing entry to medical assets, internally and externally. As we proceed to handle the rapid well being and humanitarian impacts of the COVID-19 pandemic, the private and non-private sectors are creating longer-term plans to re-open our financial system. Defending individuals’s security is necessary, which is why we should look to public well being officers to information the timing and sequencing for lifting restrictions. Securing the right quantity of kit, testing and monitoring, hospital capability and different instruments and processes in place will likely be important in giving individuals confidence they will safely return to work, college and different public areas.
As we develop our technique for returning extra staff to working on-site, the 2 principal concerns driving our method are utilizing the most recent knowledge and data to do it on the proper time – which can differ by area, state and nation – and prioritizing the well being and security of our staff. We’re working to determine what modifications could also be wanted to attain this goal, together with reviewing our present workplace configurations and protocols. We’re additionally coordinating with and in search of steering from authorities entities and well being authorities.
Rebuilding a extra inclusive financial system
Within the midst of in the present day’s uncertainties and the acute impacts – with unemployment excessive and little financial exercise – it is onerous to plan for the long run. But to put the muse for the form of restoration we’d like, it’s essential we achieve this. It’s my fervent hope that we use this disaster as a catalyst to rebuild an financial system that creates and sustains alternative for dramatically extra individuals, particularly those that have been left behind for too lengthy. The previous few months have laid naked the truth that, even earlier than the pandemic hit, far too many individuals have been residing on the sting. Sadly, low-income communities and other people of colour are being hit the toughest, exacerbating the well being and financial inequities that have been already unacceptably pronounced earlier than the virus took over.
An inclusive financial system – in which there’s widespread entry to alternative – is a stronger, extra resilient financial system. This disaster should function a wake-up name and a name to motion for enterprise and authorities to suppose, act and make investments for the widespread good and confront the structural obstacles which have inhibited inclusive financial development for years. From the re-opening of small companies to the rehiring of staff, let’s leverage this second to suppose creatively about how we are able to mobilize to handle so many points that inhibit the creation of an inclusive financial system and fray our social cloth. We sit up for sharing extra concepts quickly for a way to do that. By doing the correct factor throughout instances of disaster, we are able to emerge stronger and extra cohesive in its wake.
Lastly, we’re proud that our agency has been properly outfitted to rapidly step up and supply vital assets and help as a result of we entered this disaster ready of energy. This can be a direct results of the actions and investments we have revamped a few years to construct a robust, resilient firm. We consider it is our accountability to be there for the individuals who depend on us in instances like this. That is exactly why we work so onerous to be that form of firm.
Jamie Dimon
Chairman and Chief Government Officer
JPMorgan Chase & Co.