- JPMorgan CEO Jamie Dimon defended Wall Street against accusations it fuels inequality on his firm's third-quarter earnings call.
- "The inner city schools are not failing because of banks, okay? And infrastructure is not failing because of banks," he replied to an analyst's question about rising anti-bank sentiment.
- Bernie Sanders, Elizabeth Warren, and other Democratic presidential candidates have criticized JPMorgan and other big banks for their roles in causing the financial crisis and driving income inequality.
- Watch JPMorgan trade live on Markets Insider.
JPMorgan CEO Jamie Dimon has defended Wall Street against accusations it fuels inequality, shifting the blame away from America's biggest banks and arguing they invest in their communities.
"The inner city schools are not failing because of banks, okay? And infrastructure is not failing because of banks," Dimon replied to an analyst's question about rising anti-bank sentiment and renewed criticism of Wall Street for its role in causing the financial crisis and driving income inequality.
In his question during JPMorgan's third-quarter earnings call, Wells Fargo's Michael Mayo highlighted the recent Democratic presidential debates where Bernie Sanders, Elizabeth Warren, and other candidates have campaigned to break up large banks and ramp up taxes on the wealthy.
"It seems like a lot of people point their fingers at the banks, including JPMorgan" as "part of the cause of inequality in America," Mayo said, adding that the view of critics is "banks should be doing more to help the situation."
Dimon countered that JPMorgan offered financing "at prices way below the market" to states, cities, hospitals, businesses, consumers, and others to help them recover from the financial crisis. The bank helped its clients "get through a tough time," he said, despite the fact its profitability "dropped dramatically."
Companies invest in their employees and communities
Dimon chairs the Business Roundtable, an organization of US corporate leaders that recently declared companies exist to benefit not just shareholders, but customers, employees, suppliers, and communities as well.
"A lot of these larger companies, they're great community citizens when it comes to participating in health and stuff like that," Dimon replied to Mayo's question. They're doing a "tremendous amount to help the communities because they are having people left behind," he added.
Companies also invest in their employees, spending money on "training, health, wellness, retirement, sharing the wealth inside the company," Dimon said.
However, he seemed to suggest companies can do more to tackle inequality and contribute to society.
"I think we can help the infrastructure, help train people, get more skills, get involved with education systems," he said.
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