JPMorgan chief Jamie Dimon is America’s high banker, however he additionally wants to be the country’s commander in chief, I’m advised by individuals near him. After steering the nation’s largest financial institution impressively by ups and downs, making tons of cash alongside the best way, why doesn’t he simply go for it?
Dimon gained’t pull the set off now and presumably ever as a result of he is aware of being president requires operating for president. Mike Bloomberg’s transient and unsuccessful expertise within the 2020 race whereas getting dragged by the mud looms massive in Dimon’s considering, these individuals say.
Operating an enormous multinational firm can get messy, to not point out what comes out of the mouth of somebody as voluble as Dimon.
One other factor possible factoring into his calculus is one thing that’s at the moment roiling the financial institution. It involves the infamous financier Jeffrey Epstein, who even from his grave continues to hang-out Wall Avenue and, now, JPMorgan. Dimon and his presidential ambitions may very well be collateral harm.
Between 1998 and 2013, convicted pedophile Epstein was a major client of JPMorgan. In the present day, he’s finest recognized for the intercourse trafficking of minors, however for years he was thought of a Wall Avenue “whale” — somebody who introduced lots of of tens of millions of {dollars} in charges due to his personal substantial wealth and since he was a personal monetary adviser to a coterie of billionaires like Leon Black of Apollo fame, and Les Wexner of L Manufacturers.
How Epstein developed such an unlimited array of contacts and confidants stays largely a thriller. In 2019, he died in his jail cell, an obvious suicide after being arrested a second time for the intercourse trafficking of minors. Within the weeks main as much as his demise, I interviewed him about his profession, his first conviction, and the looming prices that had been way more critical.
“I simply need you to know I’m not a pedophile . . . Perhaps the one factor worse than being referred to as a pedophile is being referred to as a hedge fund supervisor,” he stated with a slight chortle.
That’s proper, Epstein wished me to know he wasn’t a monster but in addition that scrounging for purchasers; charging “2-and-20” — the usual percentage-fee construction on hedge fund belongings — was beneath him. He served the wealthy and the highly effective as an adviser, shopping for their yachts and paintings, and so forth., and he made a number of cash doing it.
Jeffrey’s justification
I then requested Epstein how he justified the crimes that landed him in jail. “So that you didn’t actually know the women had been underage?” I requested. Sure, he stated, including he was responsible of nothing greater than being on the receiving finish of “erotic massages.” The newest instances being assembled towards him had been false, he stated. Plaintiff’s attorneys had been trying to money in on his notoriety and wealth.
Odd stuff to make sure, and but these are the identical excuses he used to stay a shopper of JPM for years.
JPM is now being sued by the federal government of the US Virgin Islands, the place Epstein saved his non-public residence and allegedly victimized the women. One accuser can be suing JPM. Each say JPM allegedly facilitated Epstein’s crimes by permitting him to switch funds out and in of the financial institution.
The financial institution denies wrongdoing however, in response to my sources, it expects to settle at the least with the accuser as a result of the small print of its involvement with Epstein are so messy.
JPM started doing enterprise with Epstein a number of years earlier than and for a number of years after his 2008 conviction for soliciting intercourse from an underage lady.
Dimon grew to become CEO of JPM in 2006, so it’s laborious to imagine Epstein was firmly on Dimon’s radar given all the pieces else on his plate at the moment. Nonetheless, at the least one senior government in wealth administration I do know raised issues about Epstein round 2010, solely to be swatted away by his supervisors.
For years, the agency investigated cash transfers made by Epstein and filed Suspicious Exercise Experiences with financial institution regulators after they noticed cash bouncing from his JPM accounts to locations abroad. Epstein was stated to have numerous excuses for the cash strikes, like fueling his non-public jet.
JPM seemed and located no proof that the cash was utilized in intercourse trafficking, JPM contends. Individuals on the financial institution additionally stated they saved him round partially as a result of he was near a robust JPM exec, Jes Staley.
Staley was the financial institution’s head of personal and funding banking, as soon as thought of an inheritor obvious to Dimon. Staley and Epstein were so tight that Staley stayed at Epstein’s Virgin Islands lair generally known as “pedophile island.” As soon as Staley left JPM in 2013, Epstein was gone as properly, transferring his cash to Deutsche Financial institution, the place it remained virtually till he died.
Staley has stated he’s carried out nothing fallacious (his lawyer didn’t return an e mail for remark), and in latest testimony, he has stated he wasn’t the one JPM honcho conscious of Epstein’s lurid presence. Epstein’s enterprise offers inside JPM had been well-known to the agency’s authorized division, in addition to high wealth administration official, in response to depositions taken within the JPM lawsuits. However Staley in a single court docket doc says he particularly mentioned issues regarding Epstein with Dimon himself, in response to an individual with direct information of the matter.
Dimon denies ever chatting with Staley about Epstein; individuals on the agency say they’ve scoured round 5 million emails and paperwork involving Epstein and have discovered nothing linking Dimon with discussions of Epstein. If Dimon had a dialog about Epstein with Staley, they are saying, it was solely in passing. Dimon by no means met and barely knew who Epstein was till his 2019 arrest and obvious suicide, they add.
JPM is suing Staley for allegedly ignoring “apparent pink flags” about Epstein. Staley’s attorneys have denied the accusation.
Sure, fairly messy stuff, all taking part in out in court docket as this column goes to press. It might even be taking part in out in a presidential marketing campaign if Dimon selected to run.
