How JPMorgan plans to spend a pile of Trump tax gains

Cornelia Mascio
Gennaio 23, 2018

"Having a healthy, strong company allows us to make these long-term, sustainable investments", said Chariman and CEO Jamie Dimon, "We are excited about further investing in our outstanding workforce and expanding into new USA markets".

JPMorgan will also increase small business lending by $4 billion and increase loans to customers seeking affordable homes by 25 percent to $50 billion.

The company said the five-year investment was made possible by the federal tax overhaul and a "more constructive regulatory and business environment". The firm already subsidizes more than 80% of the medical plan for these employees. New York, San Francisco and Boston employees will get $18 an hour, while pay in Chicago, Detroit and Wilmington, Delaware, will go to $16.50.

J.P. Morgan Chase announced plans to spend $20 billion over five years to raise hourly pay for a portion of its workforce, add jobs and open 400 branches in new US locations.

"Now that we are planning to expand into new markets, we will hire thousands of new employees and help consumers and small businesses in these areas".

JPMorgan, which has 5,130 branches across 23 states, will continue to close branches "where there is overlap or decreased foot traffic", a bank spokeswoman said.

Like other banks, JPMorgan's branch network has been shrinking in recent years as mobile and online banking gain popularity. Even JPMorgan has closed or consolidated branches since the financial crisis.

The branch expansion, which includes 3,000 jobs, will target 15 to 20 new markets in several new states over five years, the bank said.

Dimon has been one of corporate America's loudest cheerleaders for the tax overhaul. As the head of the powerful Business Roundtable, Dimon emerged as one of the most vocal and visible CEOs pushing for changes to the corporate tax code a year ago.

Large banks are expected to be among the biggest beneficiaries of the broad changes to the tax code.

Several large US companies have announced one-time bonuses, investments in jobs and facilities and growth plans since the tax overhaul enacted in Washington past year.

Later this month, eligible employees will receive an annual award of $750, which was communicated in December 2017.

Analysts expect JPMorgan to save about $4 billion a year on taxes because of the new federal tax law, but have been anxious that banks will quickly "compete away" the savings from the new tax law in a bid to take business from one another. And some of the ones that have are likely to share just a small percentage of their winnings.

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