Jamie Dimon, Brian Moynihan, Jane Fraser and the bosses of other great banks have soon learned something more than to fear of Donald Trump than only her fees wars, in the money she has learned.
Sources close to the Trump administration say that Donald and his economic team plan to fly to commercial banking by demanding that CEO and, more importantly, their pocket banks, such as JP Morgan, Bank of America, Citigroup-Economic Business Growth.
“Trump wants these bankers to run banks again, not coverage funds, and that means lending to small businesses,” said Trump’s privileged information about money. “If they are because to be coverage funds, they must sell their commercial banks and become Goldman Sachs.”
The small company is generally defined as having 500 or Ferwer employees. It is considered a key piece of the US economy, responsible for almost half or all economic activity, according to the administration of small businesses in the United States.
It was also the backbone of traditional banking, but the fact that it is no longer the case is something that the White House wants to change.
As my Trump source said: “When was the last time he heard Dimon talk about real banking as loans to small businesses in Main Street instead of its operations worldwide?”
The representatives of Dimon, Moynihan and Fraser did not comment. A White House spokesman did not comment.
The loan to these companies is an industry of $ 1.7 billion, which sounds good until you consult is eclipsed by other banking areas.
From the end of the 1990s, when a wave of deregulation allowed financial institutions to house securities and commercial banking under the same roof: trade, titulization, M&A and global loans became more lucrative than delivering loans.
In recent years, non -bank lenders have intervened and tried to fill the void, but do not have the balance sheets to increase loans to small -sized companies such as JP Morgan, Bank of America and Citigroup, all with $ 1 billion or more in assets.
Of course, banks will tell you that it is not their fault that small businesses are reduced in importance to them. The demand for loans has been low from Covid, which closed the operations of Mom and Pop that they never reopened. The inflation of the Biden era did not help things. The regulation became particularly direct after the disappearance of Silicon Valley Bank and other community lenders.
The trumpets are scheduled to remember Dimon & Co., that Biden is gone. The regulatory environment is changing to deregulation, so they must open the spite to small businesses. And they have a mushroom to do it: all the big banks are too large for institutions, which means that if they are screwed enough, the federal government rescue
Such solicitation would be ignored in the past given the cozy chiefs of Bank of Relations Maintaining with DC -based regulators and previous administrations. But I have pointed out in the past, the Bank’s CEOS fear the orange man in the White House, which is known to be vesticive when he does not go out with his.
And for the next three years, Trump is Athir Regulator, so they are probably inclined to play well with him, no matter how much it costs them.
