JPMorgan pledges $10 billion to US companies ‘essential to national security’
JPMorgan Chase (JPM) said on Monday it plans to invest as much as $10 billion in direct equity and venture capital stakes in companies operating within key industries such as artificial intelligence, mineral producers, and defense.
The strategy is part of a wider “security and resiliency” plan by the country’s largest bank to commit $1.5 trillion in future financing and spending on industries critical to national and economic security in the US and allied nations, according to a press release.
JPMorgan CEO Jamie Dimon said that the plan is aimed at speeding up investments in these critical industries where the US and its allies have become hampered domestically and overly reliant on foreign supply chains.
“It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing — all of which are essential for our national security,” Dimon said in the press release.
“Our security is predicated on the strength and resiliency of America’s economy. America needs more speed and investment,” Dimon added, noting that “excessive regulations,” “partisan gridlock” and the education system have all hampered such efforts.
JPMorgan had already planned to commit $1 trillion over the next decade to such areas as aerospace, defense, energy, manufacturing, and emerging technology. This initiative adds another $500 million including the $10 billion worth of investments.
During a call with reporters Monday morning, Mary Erdoes, CEO of JPMorgan’s asset and wealth management division, left the door open for the bank to go higher than the $10 billion in investments depending on the initiative’s results.
“Up to 10 billion is where we’re going to get focused and get going, and we’ll review it as times passes, and we see how successful we are,” Erdoes said.
JPMorgan said it will hire more bankers, investment professionals, and other experts while leaning on research efforts from its asset and wealth management division, as well as its newly formed geopolitics advisory service.
Doug Petno, JPMorgan’s co-head of the bank’s commercial and investment banking division, said “the most immediate” hiring for the initiative will be aimed at building out the team tasked with deploying the $10 billion worth of investments while the rest of the hiring will take place within the commercial and investment bank.
The Trump administration has been ramping up efforts to secure these same industries in the US as it spars with China over trade negotiations. In recent months, the government has taken equity stakes in public companies like semiconductor giant Intel (INTC), rare earth producer MP Materials (MP), and Canada-based mining company Trilogy Metals (TMQ).
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