Zinger Key Points
- Wall Street has considered pushing Jamie Dimon to run for president due to dissatisfaction with Biden and Trump's economic policies.
- Despite Dimon's reluctance, financial circles see him as a potential alternative amid a divisive political landscape.
The idea of Jamie Dimon running for president has become popular in financial circles, akin to a trend gaining momentum.
The CEO of JP Morgan Chase & Co. JPM has stated he isn’t interested in the role, especially if it involves an election, reported Reuters.
Despite this, financial pundits, including hedge fund manager Bill Ackman, have occasionally tried to encourage Dimon to run.
President Joe Biden‘s recent lackluster debate performance has reignited their hope, the report added.
The issue isn’t whether Dimon will actually run — he almost certainly won’t — but rather, why there is any desire for him to do so.
According to Reuters, the reason is clear: For Wall Street, the upcoming White House race, currently between Biden and former President Donald Trump, presents a notably unappealing set of options.
In November, voters will face a decision between two potential administrations, neither of which aligns closely with the moderate, business-friendly centrism that typically supports the financial sector’s interests, the report added.
Regulatory Pressures Under Biden Vs. Trump’s Economic Appeals
Thus far, Wall Street money has favored the right, Reuters noted. The finance, insurance, and real estate sectors have donated $247 million to Republican candidates in the current two-year political cycle, compared to $227 million to Democrats, according to OpenSecrets data.
In regards to the presidential hopefuls, Trump leads with $115 million in donations, while Biden has received $46 million.
Since Biden took office in early 2021, regulatory pressures on the finance sector have intensified, Reuters pointed out. Agencies such as the Securities and Exchange Commission and Consumer Financial Protection Bureau, led by Biden-appointed figures Gary Gensler and Rohit Chopra, have initiated robust enforcement efforts against financial institutions.
Increased scrutiny on antitrust issues has also led to a significant decrease in merger activities.
In contrast, Trump’s broad proposals have appealed directly to profit-driven Wall Street capitalists. The former president intends to reduce the corporate income tax rate from 21% to 20%, eliminate taxes on tips for service-industry workers, and maintain the current threshold for the estate tax, which has been temporarily raised.
These measures are more favorable compared to Biden’s plan, which includes raising the corporate tax rate to 28%, increasing taxes on dividends and capital gains, and proposing to quadruple the 1% tax on corporate share buybacks implemented this year.
The Dilemma Of Dimon’s Political Identity
Some financial leaders also worry about their workforces.
The two main political parties are deeply divided on social issues, and the political center is steadily narrowing. Dimon has characterized himself as having a Republican mindset and Democratic values, yet that middle ground isn’t a viable electoral choice, Reuters stated.
Given the situation, although Ackman may want Dimon to lead from the Oval Office, it would be more beneficial for the financial community to keep Dimon in his current role to maximize its influence, Reuters added.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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