JPMorgan Chase & Co. (NYSE:JPM), now the largest U.S. bank by assets since it leapfrogged Bank of America (NYSE:BAC), is not exactly well-liked among the “little guy.” JPMorgan CEO Jamie Dimon has said that the wealthiest Americans need more tax breaks. Dimon has also said so-called Volcker rule to limit proprietary trading by big banks says “if you interpret it, you can’t even make markets for your clients.”
If small-time investors and consumer bankers need more fuel for their fire, here it is: JPM execs recently went on the record saying that most folks with less than $100,000 are actually a burden on the bank.
Specifically, JPMorgan Chase said that 70% of its customers with less than $100,000 in deposits and investments will be unprofitable following regulations that cap lenders’ fees.
“Lost revenue has to be replaced with higher share of wallet and customer penetration,” Todd Maclin, chief executive officer of consumer and business banking at JPM, said in a recent presentation. “You have to get your costs and where you spend your time, to the fullest extent possible, more in line with where the opportunity is.”
In short, if you’re a small-time banker… you really won’t end up mattering that much to JPMorgan Chase.
Is that just posturing by the bank as a way to push Congress and regulators to ease guidelines that are increasing costs? Maybe. After all, telling your customers they don’t matter is dangerous move that few businesses would make without some kind of ulterior motive.
But for those who think that banks and financial institutions don’t care a whit about customer service and are just out to stick it to the little guy… well, this soundbite may just be more proof.
, said about 70 percent of customers with less than $100,000 in deposits and investments will be unprofitable following regulations that cap lenders’ fees.