JPMorgan Chase CEO - Economy could still “double dip”

1 March 2010

JPMorgan Chase will not raise its dividend until the threat of a “double dip” in the economy has subsided, the company’s chief executive officer has said.

Jamie Dimon made the comments at the financial institution’s annual investor meeting, Reuters reported.

Representatives from the bank stated that ideally the dividend would be increased from 75 cents to $1.

However, further confirmation that the financial crisis had ended, such as rising employment figures, would be needed before the bank would increase the figure.

Mr Dimon said: “We don't mind holding extra capital right now because we don't know what's going to happen. There are huge
potential negatives out there."

He added that the company is “cautious” due to uncertainty over the amounts of money needed to be maintained in reserve for future potential credit losses.

Although the economic turmoil in Greece was not an issue for the bank, the CEO did express concern over the ability of states such as California to manage debt.

Earlier in the month, JPMorgan announced the acquisition of the commodities arm of RBS Sempra for $1.7 billion.

By Jim Ottewill

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