:max_bytes(150000):strip_icc()/GettyImages-2231639323-4f2b0b2e196b4bc3bb0c5b048fa57b52.jpg "JPMorgan Launches .5 Trillion Plan to Support Industries Deemed Critical to U.S. Interests")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2231639323-4f2b0b2e196b4bc3bb0c5b048fa57b52.jpg)
Key Takeaways
- JPMorganChase has launched a $1.5 trillion, 10-year initiative to boost sectors seen as vital to U.S. security and resiliency.
- The bank will invest up to $10 billion in select companies to help increase their growth, innovation, and strategic manufacturing.
- CEO Jamie Dimon said the U.S. is too reliant on others for important minerals, products, and manufacturing, and needs to “act now” to address those challenges.
JPMorganChase has announced plans to pump $1.5 trillion dollars over ten years into industries seen as critical to U.S. national interests.
Under the program, called the Security and Resiliency Initiative, the bank said it will “make direct equity and venture capital investments of up to $10 billion to help select companies primarily in the United States enhance their growth, spur innovation, and accelerate strategic manufacturing,” according a press release Monday.
Why This is Significant
News of JPMorgan’s plans comes as major technology companies and the U.S. government have been announcing investments in critical industries to ensure the U.S. doesn’t need to rely on producers in other countries. Several of the U.S. companies that have received those investments recently have seen their share prices surge.
The plan will focus on four key areas: Supply Chain and Manufacturing; Defense and Aerospace; Energy Independence and Resilience; and Frontier and Strategic Technologies. In addition JPMorgan has divided those into 27 sub-groups “ranging from shipbuilding and nuclear energy to nanomaterials and critical defense components.”
JPMorgan said that to drive the initiative, it will hire more bankers, investment professionals, and other experts, as well as “create an external advisory council of experienced leaders from the public and private sectors to help guide the long-term strategy.”
CEO Jamie Dimon said that the country has become too reliant on other places to provide critical minerals, products, and manufacturing. “Our security is predicated on the strength and resiliency of America’s economy,” Dimon said. “We need to act now.”
Shares of JPMorgan, which is due to release its third-quarter earnings report on Tuesday, were up 2% in recent trading, tracking a broader move higher for U.S. stocks. The stock has gained 28% since the start of the year.
