Federal Reserve Bank of St. Louis’ Post

Its all about Leadership, again! Leadership performance of Top Five US banks (I admit not as exciting as Magnificent Seven) since 2018. What is striking is the divergence of stock performance (range -20% to +90% approx.), even though they operate broadly as US-anchored large players in capital markets and WM. MS has delivered on their WM scale build and execution; top marks for stellar leadership by James Gorman. Will it continue under his successor? GS continues strong, despite headwinds in Consumer and Trading. Recent senior management fissures are challenging David Solomon. Will he overcome? JPMorgan is the diversified giant under a strong leader and continues to deliver. What will post (someday)-Jamie era look like? ('when Jamie speaks, people listen', borrowing from a memorable Smith Barney ad). BoA promises to perform well and continues its effort. Not sure why Merrill WM franchise- second only to MS- is not fully helping with steady fee income it generates. Significant Buffet holding. Citi has always been a potential turnaround story. After eight years under Corbat of listless performance, it looks like the restructuring plans by Jane- incl. hiring Andy Sieg and now Vis Raghavan- may pay-off. For LT investors: XLF ETF for broad value play and dividends.

The Vision of and leadership of J.P. Morgan is a lesson to us all: Steering Through Crisis In the annals of finance, few names resonate with the power and legacy of J.P. Morgan. A titan of Wall Street, Morgan's story is a testament to the impact of visionary leadership during times of economic turmoil. The Panic of 1907: A Critical Moment The year was 1907, and the United States grappled with a severe financial crisis, now known as the Panic of 1907. The stock market had plummeted, banks were on the brink of collapse, and public confidence in the financial system was eroding rapidly. Morgan's Intervention: A Masterstroke As panic gripped the nation, J.P. Morgan emerged as an unlikely savior. With a keen understanding of the banking system and an unmatched network of influence, Morgan spearheaded a bold plan to rescue the economy. He summoned the presidents of major banks to his mansion in New York, not merely as a financier but as a leader with a vision. Over a tense and grueling series of meetings, Morgan convinced them to pool resources and shore up troubled institutions. His commanding presence and unwavering conviction in his strategy were pivotal in rallying support from other bankers. The Aftermath: A Legacy Cemented Morgan's efforts not only averted a deeper crisis but also laid the groundwork for major financial reforms, including the creation of the Federal Reserve System. His leadership during the Panic of 1907 was a clear demonstration of how strategic vision, coupled with decisive action, can steer the course of financial history. A Lesson for Today's Leaders Morgan's story resonates even in today's dynamic financial landscape. It reminds us that true leadership is about seeing beyond the horizon, taking decisive action, and inspiring others to join in a collective effort towards stability and growth. As financial professionals, we stand on the shoulders of giants like J.P. Morgan. Let's carry forward the legacy of visionary leadership, making a difference in the lives of our clients and the broader economy. #FinancialLeadership #JPMorgan #EconomicHistory #LeadershipLessons #FinanceProfessionals

Jamie Dimon, CEO of JPMorgan Chase, recently cast doubt on the U.S. economy achieving a "soft landing" amid prevailing challenges such as high inflation and increasing interest rates. During JPMorgan's annual shareholder meeting, Dimon's skepticism highlighted the heavy impact of current economic conditions coupled with geopolitical tensions from ongoing conflicts like the Ukraine crisis and friction with China. 🔍 As someone in the commercial real estate sector, Dimon’s perspective resonates deeply. Navigating investments and development projects amid such economic unpredictability requires a keen understanding of broader financial indicators. Similar to cautiously monitoring a property’s structural integrity before buying, evaluating the economic 'soundness' is crucial. Recollecting a moment from 2008, I remember how abrupt economic downturns can turn promising real estate ventures upside down in an instant. 💬 What are your strategies for mitigating economic risks in your commercial real estate projects? Moreover, Dimon's call for the Federal Reserve to enhance transparency is a crucial reminder of the need for clear communication in avoiding market disruptions—a principle that applies universally, including real estate dealings. 🔄 Share your thoughts on how current global economic conditions are shaping your strategies and the real estate market in general. 📊 #RealEstateInvestment #EconomicOutlook #FederalReserve #CommercialRealEstate #JamieDimon #JPMorgan #MarketVolatility

As part of our Speaker Series, the Black Wealth Club was elated to receive Thasunda Brown Duckett, President & CEO at TIAA. In our conversation, we spoke about how to live your life like a diversified portfolio, how we can close the retirement and wealth gaps for minorities in the US and Canada, and the meaning of wealth. Be on the lookout for upcoming clips highlighting our great chat with Thasunda Brown Duckett. #BlackWealthClub #SpeakerSeries #BlackWealth #BlackLeaders #Finance

Succession planning is crucial for the longevity and prosperity of community banks, preventing disruption from unexpected leadership changes while building confidence among customers, investors and regulators. Check out this Independent Banker article to learn more about combatting issues surrounding succession planning and creating a pipeline of future leaders through education and other efforts. https://bit.ly/4eHS94L

Good intelligence and knowledge are KEY to a smoother ride on the wealth journey. Just remember, as you hit milestones along the way, there is not final destination. It's the JOURNEY that matters and shapes you into the investor who handles financial and personal success gracefully. #wealth

The Long History of Wall Street’s Misdeeds How soon we forget, but in September 2008, the collapse of Bear Sterns, Merrill Lynch, Lehman Brothers, AIG, Fannie Mae, and Freddie Mac triggered a financial crisis. The result was a global recession that cost tens of trillions of dollars, rendered 30 million people unemployed, and doubled the U.S. national debt. The 2008 crisis was not an accident. An out-of-control financial industry caused it — and many key players are still involved today, both on Wall Street and in the Federal Government. Since the 1980s, the rise of Wall Street has resulted in a series of increasingly severe financial crises. Each crisis caused more damage than the previous, while Wall Street has made billions of dollars in fees and commissions. Click on the image for the whole story.

The basic ground rules for investment by individuals are: *Follow an evidence based approach *Don't try to time the markets or stock select. The evidence does not suport these despite what the financial press and many fund managers would have you believe. *Do adopt a long term buy and hold strategy- stay invested at all times - unless you need to access funds in the short term. *Keep costs down *Split your investment between conventional equities (shares) and bonds according to your risk preference and capacity for loss. For most people this is best done through low cost funds. *Avoid investments that you don't understand. *Take advice. Don't try to do this yourself unless you are an investment professional. *Only deal with advisers that are properly qualified and regulated by the FCA, SEC or one of the other major regulatory bodies. Check them out before you engage them. Before you embark on any investments, step back and consider what your values and goals are. The investments need to be aligned with this. They are not an end in themselves. You might find this self-assessment scorecard useful—it provides an overall rating based on your confidence in achieving your important goals. You can access it here: shorturl.at/2CNyd. After reviewing it, feel free to reach out if you’d like to discuss the results. #investment #financialplanning

JPMorgan Chase & Co. CEO Jamie Dimon wrote to shareholders, "It is important to note that the economy is being fueled by large amounts of government deficit spending and past stimulus. There is also a growing need for increased spending as we continue transitioning to a greener economy, restructuring global supply chains, boosting military expenditure and battling rising healthcare costs. This may lead to stickier inflation and higher rates than markets expect. Furthermore, there are downside risks to watch. Quantitative tightening is draining more than $900 billion in liquidity from the system annually — and we have never truly experienced the full effect of quantitative tightening on this scale. Plus the ongoing wars in Ukraine and the Middle East continue to have the potential to disrupt energy and food markets, migration, and military and economic relationships, in addition to their dreadful human cost. These significant and somewhat unprecedented forces cause us to remain cautious." https://lnkd.in/gmh8nMzw