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Jamie Dimon, head of the biggest bank in the U.S., has let it be known that he will sell 1 million of his shares in JP Morgan beginning next year. This is the first time that Dimon will sell his bank shares for anything other than exercising options.
Banks are going through the most torrid of times. Many have gone to the Federal Reserve in order to receive the promised 100% on their bonds that are underwater. If this facility were not available, the banking system would likely have crashed to dust as depositors pulled their cash out, exactly as was the case with Silicon Valley Bank.
Share sale points to lack of confidence in banks
For Dimon to sell part of his ownership shares in his beloved JP Morgan Bank is testimony to what must be his failing confidence in the bank, and in the entire banking system in the United States.
The fact that Dimon is selling his shares gradually over the course of next year is because of insider trading rules which prevent those on the inside trading on news that they would likely be among the first to receive. The 1 million shares in JP Morgan make up around 12% of Dimon and his family’s share in the stock. According to reports, the sale is for “tax planning” and “diversification” reasons.
Opinion
The writing is on the wall for banks. Overstaffed, ponderous, and seemingly unable to provide a decent service to their customers, banks have morphed into the role of controlling and ruling their customers, having the final say on how much can be spent and who it is sent to, among other decisions that were always the customer’s, even in recent memory.
On top of being tools of surveillance for government, banks are even becoming politicised. Take the case of thousands and thousands of people who have literally been de-banked, and the case of Nigel Farage in the UK who had his bank account cancelled simply because of his political views.
What banks must realise though, is that their time as overlords of their customers is drawing to an end. As
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Author: Laurie Dunn
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