JPMorgan launches decade-long investment campaign across four sectors
CEO Dimon calls for policy changes and fewer barriers
JPMorgan to hire more bankers to support its initiative
NEW YORK, October 13 (Reuters) – JPMorgan Chase (JPM.N)open a new tab announced Monday plans to hire bankers and invest up to $10 billion in U.S. companies considered critical to national security and economic resilience, as part of a broader $1.5 trillion commitment.
The 10-year initiative aims to facilitate, finance and invest in sectors critical to the growth of the U.S. economy, including defense, energy and manufacturing.
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Shares of America’s largest bank rose more than 2%.
JPMorgan said it would deploy the $10 billion through direct equity and venture capital investments.
CEO DIMON: AN INITIATIVE NOT LEADED BY TRUMP, “100% COMMERCIAL”
US President Donald Trump is seeking to modernize infrastructure and reduce reliance on foreign supply chains, particularly in sectors such as pharmaceuticals, semiconductors, clean energy and rare earth minerals.
Monday’s announcement also follows Trump’s criticism of JPMorgan and its rivals over so-called “debanking” customers because of their political or religious beliefs.
JPMorgan CEO Jamie Dimon, speaking on a conference call in which he was repeatedly asked about government involvement, said the investments were not driven by the Trump administration.
“This is a JPMorgan initiative,” he clarified, stressing that the investments would be “100% commercial” and not philanthropic.
Trump restarted the trade war with Beijing on Friday, ending an uneasy truce between the world’s two largest economies by promising to sharply increase tariffs in retaliation against China for curbing its exports of rare earths.
“It has become painfully clear that the United States has allowed itself to become overly dependent on unreliable sources of critical minerals, products and manufacturing – all of which are essential to our national security,” Dimon said in an earlier statement.
JPMorgan said its new “security and resilience initiative” would facilitate financing and investment in four strategic sectors: supply chain and manufacturing; defense and aerospace; energy independence; and cutting-edge technologies such as artificial intelligence and quantum computing.
The company said it already planned to facilitate and finance about $1 trillion over the next decade to support customers in these sectors, according to previously undisclosed internal figures, but would increase that size by 50%.
US PURSUES CASES INVOLVING DOZENS OF COMPANIES
The U.S. government is pursuing deals in up to 30 sectors, involving dozens of companies deemed critical to national or economic security, Reuters reported this month.
JPMorgan, which helped secure the government’s deal with US rare earth mining company MP Materials (MP.N)open a new tabsaid in a recent company podcast that the bank was working with the Trump administration to further explore such opportunities.
“We’ve had as many as 100 calls with clients to talk about the MP deal as well as what it means for other industries,” said Andrew Castaldo, co-head of mid-market M&A at JPMorgan. “And we have made many trips to Washington to explore these opportunities with the government.”
Dimon also stressed the need for policy reform to accelerate progress, citing regulatory delays and workforce challenges.
“America needs more speed and more investment,” he said.
FOUR KEY INVESTMENT AREAS
The four key investment areas identified by the company have been divided into 27 sub-sectors ranging from shipbuilding and nuclear energy to nanomaterials and secure communications. These will include medium-sized companies as well as large corporate clients, the press release added.
The bank plans to create an external advisory board comprised of public and private sector executives, in addition to hiring more bankers and investment professionals.
Dimon said he intends to quickly hire a top-notch investment team, without specifying how many bankers he plans to add.
It will also expand research into supply chain vulnerabilities and emerging technologies using its recently launched Geopolitics Center.
Reporting by Nupur Anand in New York; Editing by Jamie Freed, Lananh Nguyen, Mark Porter and Joe Bavier
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Nupur Anand is a US banking correspondent for Reuters in New York. It focuses on JPMorgan Chase, Wells Fargo and regional banks. Anand has covered the banking and finance sector in India for more than a decade, chronicling the collapse of major lenders and the turmoil in digital banking and cryptocurrencies. She holds a degree in English literature from the University of Delhi and a postgraduate diploma in journalism from the Indian Institute of Journalism and New Media, Bangalore. Anand is also an award-winning fiction writer.
