JPMorgan CEO Jamie Dimon: Stop Bashing the Rich

Jamie Dimon, the CEO of JPMorgan Chase, is railing against bashing the rich.

Getty Images Jamie Dimon

Dimon was responding to a question at an investor conference about the hostile political environment towards banks.

"Acting like everyone who's been successful is bad and that everyone who is rich is bad — I just don't get it," said Dimon at the conference, which was organized by Goldman Sachs [GS  105.13    3.97  (+3.92%)   ].

Big banks, and CEOs like Dimon, have come under fire from Occupy Wall Street and other protesters who are disgruntled about income inequality and feel that big corporations — financial institutions in particular — have undue influence on government. In fact, last month, the protesters in New York targeted Dimon specifically, marching to his apartment and the residences of other wealthy New Yorkers.

Dimon said he's worked on Wall Street for much of his life and contributed his fair share.

"Most of us wage earners are paying 39.6 percent in taxes and add in another 12 percent in New York state and city taxes and we're paying 50 percent of our income in taxes," Dimon said in defense of his fellow Wall Street bankers.

At the conference, Dimon also provided an update on JPMorgan's [JPM  34.00    0.77  (+2.32%)   ] fourth-quarter and 2012 outlook.

The bank expects investment banking income to be relatively flat in the fourth quarter compared with the third quarter, excluding an accounting adjustment, according to Dimon's presentation. The bank also expects low interest rates to reduce 2012 net income by about $400 million.

It also said it has the authority to repurchase more of its shares after spending less money than regulators had allowed on dividends.

The second largest U.S. bank can buy back $950 million in stock and warrants as part of an adjustment to a capital plan approved by the Federal Reserve earlier this year, Dimon said.

The bank is allowed to buy back stock right away but "will decide what to do over time," Dimon said.

JPMorgan has repurchased about $8 billion in stock in 2011, the limit outlined by the Fed as part of a stress test completed in March.

Banks have been eager to buy back their own shares at depressed prices, but also face regulatory pressure to conserve capital as a cushion against future losses.

U.S. banks will undergo another round of Fed stress tests starting in January to determine whether they can increase dividends or buy back more shares. Dimon said he expects the results for his bank will be "fine."

Banks also face impending international capital rules that could require large "systematically important" banks to attain a Tier 1 common equity ratio — a measure of capital compared to assets weighted by risk — of 9.5 percent by the end of 2018.

JPMorgan could achieve 9.5 percent ahead of schedule, by the end of 2012, if its board decides to do so, Dimon said. He noted there may be a "race to the top" among banks to reach that mark.

Dimon also provided an update on the bank's fourth-quarter and 2012 outlook.

Total investment banking revenue in the fourth quarter could be down from the third quarter, excluding an accounting adjustment, if December is a weak month, Dimon said. In the third quarter, JPMorgan posted investment banking net income of $1.6 billion on revenue of $6.4 billion.

In a presentation on Tuesday, Bank of America [BAC  5.89    0.11  (+1.9%)   ] CEO Brian Moynihan said the bank's global banking and markets unit had seen better sales and trading results in the fourth quarter, compared to a "very weak" third quarter.

In consumer banking, JPMorgan expects low interest rates to reduce 2012 net income by about $400 million, Dimon said. The bank expects to add 175 branches next year, down from a previous estimate of about 300, as new regulations crimp debit card and other fees made by banks.