Jamie Dimon plans to sell about 12% of his stake in JPMorgan – two weeks after profits soared 35% on the rapid rise in interest rates and the CEO made sobering statements that geopolitics and government inaction led to ‘a dangerous time ‘ have led

Chase CEO Jamie Dimon will sell about 12 percent of his stake in the nation’s largest bank for “tax planning purposes,” just weeks after he said the world was going through a “dangerous time” due to geopolitics and “government inaction” .

Dimon, 67, never sold any of his shares in Chase during his tenure at the financial giant. The sale of its one million shares will take place in 2024. The disclosure was made in a regulatory filing on Friday.

The family’s entire stake in the bank amounts to $1.2 billion, spread over 8.6 million shares. Chase’s total market cap is $408 billion.

The bank announced 35 percent earnings growth earlier this month, meaning Dimon’s personal shares would increase in value by $3.5 million.

Dimon and his family plan to sell one million of the 8.6 million shares they own under the terms of a stock trading plan, the bank said in a regulatory filing on Friday.

The CEO has led the company since 2005. His contract stipulates that he can receive up to two million shares based on his job performance.

Smoke rises after an Israeli attack on Gaza City. Economists are watching the conflict closely to see how it affects global trade and commodities

Dimon’s sale comes as the war between Ukraine and Russia continues

Shares of Chase-JPMorgan fell 0.6 percent before the bell, but then pared losses to the last trade down 0.2 percent.

The sale is intended for “financial diversification and tax planning” and Dimon “continues to believe that the company’s prospects are very strong,” the bank said.

He also still holds unvested performance shares and stock appreciation rights, JPMorgan added.

Dimon has been at the helm of the largest American bank for almost eighteen years and led it through the 2008 financial crisis.

Earlier this year, he also orchestrated a rescue deal for First Republic Bank, which collapsed in May after industry turbulence caused deposits to spiral out of control.

JPMorgan Chase’s third-quarter profit rose 35 percent from last year, it was reported earlier this month, fueled by a rapid rise in interest rates, but Dimon issued a sobering statement on the current state of the world and economic instability.

“This may be the most dangerous time the world has seen in decades,” Dimon wrote in the bank’s earnings statement.

Dimon laid out a laundry list of important issues: the war between Russia and Ukraine, the new war between Israel and the Palestinians in Gaza, high government debts and deficits, high inflation, but also the tight labor market, where workers’ demands for higher wages have led to high-profile strikes in the production and entertainment sectors.

“While we hope for the best, we (JPMorgan) are preparing for a wide range of outcomes so that we can deliver consistently to our clients regardless of the environment,” he said, adding that these conflicts could reshape global trade disruption, similar to what happened in Ukraine in early 2022 or after the COVID-19 pandemic.

Dimon often focuses on global and economic issues that go beyond the scope of banking

Dimon, 67, will sell 12 percent of his stake in the bank, worth about $144 million.

Dimon often focuses on global and economic issues that go beyond the scope of banking. He is often seen as the banker to whom Washington and world leaders can turn for advice, solicited or unsolicited. His comments are likely to resonate in Washington and corporate America.

In a call with reporters, Dimon said he was in regular contact with his main competitors on Wall Street about the geopolitical and economic situation.

Despite the uncertainties, the bank remains optimistic about both the American consumer and the American economy. Jeremy Barnum, the bank’s chief financial officer, said the bank has so far not seen any “acute pain” in consumers’ finances as a result of higher interest rates, although it is seeing higher levels of delinquencies and charge-offs in its credit card portfolios .

JPMorgan reported a profit of $13.15 billion, compared with $9.74 billion in the same period a year earlier. Per share earnings rose to $4.33 per share, up from $3.12 per share a year earlier. The result exceeded analysts’ expectations, who forecast earnings of $3.95 per share, according to FactSet. JPMorgan shares rose 3.6 percent in late morning trading on Wall Street.

The bank is no longer predicting a recession for the U.S. economy, saying instead that the Federal Reserve’s higher interest rate policy to combat inflation will successfully result in what has been called a “soft landing,” with inflation slowing. and economic activity cools down. but economic growth is not shrinking.

JPMorgan is also currently integrating First Republic Bank into its operations, after buying that bank earlier this year when it failed during a banking panic in the spring. JPMorgan earned about a billion dollars in profits from its First Republic division.

Total revenue in the July-September quarter was $39.87 billion, compared to $32.7 billion a year ago.

That was largely driven by higher interest rates, which allowed JPMorgan to charge customers significantly higher interest amounts on loans than a year ago.