Salem Radio Network News Tuesday, May 30, 2023


JPMorgan CEO Dimon scheduled to meet White House’s Brainard during D.C. trip -source

By Lananh Nguyen and Nandita Bose

NEW YORK (Reuters) – JPMorgan Chief Executive Jamie Dimon is scheduled to meet with Lael Brainard, the director of the White House’s National Economic Council, during the executive’s planned trip to Washington, according to a person familiar with the situation.

Reuters could not establish the agenda of the meeting that was planned.

The meeting comes as First Republic Bank’s efforts to secure a capital infusion continued on Wednesday, as the troubled regional lender started to plan for the possibility it may need to downsize or get a government backstop.

The CEOs of major banks gathered in Washington for a two-day scheduled meeting which started on Tuesday, sources familiar with the matter previously said. The quarterly meeting of the Financial Services Forum included Dimon and Bank of America Corp CEO Brian Moynihan, who head the nation’s two largest lenders, the sources said.

The banks were aiming to work out details for what needs to be done for First Republic within the coming 24 hours, another source said.

Eleven lenders, including the eight members of the Financial Services Forum, threw First Republic a lifeline of a combined $30 billion in deposits last week.

Major banks and private equity firms have so far balked at offering First Republic the capital infusion it craves for fear of releasing losses on the bank’s loan book and investment portfolio amid a rise in interest rates.

On Tuesday, Reuters reported First Republic is examining how it can downsize and sell parts of its business, including some of its loan book, in a bid to raise cash and cut costs.

(Reporting by Lananh Nguyen and Saeed Azhar in New York and Nandita Bose in Washington; editing by Megan Davies and Jonathan Oatis)


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