Jamie Dimon, chief executive of JPMorgan Chase, said Thursday he regretted his comments about the banking giant lasting longer than China's Communist Party, and vowed to move quickly to minimize any longer-term fallout.
Dimon stated during a Boston event on Wednesday that he "made a joke" on a recent trip to Hong Kong, referring to the ruling CCP's 100th anniversary.
"The Communist Party is commemorating its centennial anniversary. So is JPMorgan," the CEO said, referring to the bank's recent celebration of a hundred years in China. "And I'm willing to wager that we'll endure longer."
Dimon instantly recognized his error after making the remark, a source familiar with the incident said. He decided to express regret after seeing the reaction, the insider claimed.
Dimon gave an additional reaction on Thursday through a statement sent by his representative.
"I regret making that remark and should not have done so... I was attempting to underscore our company's strength and durability," Dimon explained.
Dimon's remarks had the potential to jeopardize JPMorgan's growth plans in China, where the bank received regulatory approval in August to become the country's first foreign owner of a securities brokerage.
According to China analysts in the United States, his prompt apologies should assure that no severe damage was done.
The remarks were a rare exhibition of openness by a senior corporate executive regarding the leadership of the world's second largest economy, which has been clamping down on private businesses in recent months.
Dimon "acknowledges he should not speak lightly or disrespectfully about another country or its leadership," the bank representative stated.
JPMorgan is committed to China, the representative noted, and Dimon made it clear during the Boston debate that "China and its people are extremely intelligent and thoughtful."
Dimon's apology demonstrates the level of deference required of international corporations in order to remain "in the good graces of the Chinese government and preserve access to the country's markets," said Eswar Prasad, a Cornell University professor.
Chinese enterprises that conduct business in the U.S. are a significant source of revenue for banks. Additionally, Chinese officials are relaxing regulations to allow American lenders to grow their operations in China.
Meanwhile, Hu Xijin, the outspoken editor of nationalist tabloid Global Times, said on Thursday that Dimon didn't have to actually "regret."
"The CPC has fared significantly better than JPMorgan in its region of influence. As a CPC member, I have no objection to your company riding the CPC's popularity wave," Hu said in quotes by Reuters.
