Tuesday, September 2, 2014
Inquirer Daily News

Is Wall Street, dissed by U.S., moving to China?

US "bank bashing" drove JPMorgan's M&A chief to Hongkong and threatens the dollar's supremacy, claims Dick Bove

Is Wall Street, dissed by U.S., moving to China?

JPMorgan Chase & Co. is moving capital markets and M&A boss Jeff Urwin to Hong Kong. Wall St Journal in this story calls it a routine move to "shore up" a weak part of the company, and notes European banks that put senior people in China haven't kept them there.

But veteran bank analyst Richard X. Bove' sees this as a threat to the dollar and the US standard of living. He gives two reasons for the move: Asia's growing faster than the U.S.; and "the bank will not be as constrained by U.S. regulators." More US banks are looking to leave Wall St for places where they aren't taxed and treated like enemies, he tells clients of Rochdale Research in a report today.

Bove' says his banking industry sources tell him other giant banks are preparing to "move key business outside the United States" due to the "hostile" attitude of the federal and New York State governments. Politicians here "have made their careers bashing banks," while the Chinese are eager for U.S. banking help.

Why not just the bankers go, if they're unhappy with their reputations and treatment here? Because losing banks "will dilute the U.S. control over the global financial system" and end the dollar's role as "the world's only reserve currency," Bove' writes. That means a weaker dollar, more pressure to pay our debts, hhigher U.S. interest rates, higher import prices, and a lower standard of living of many Americans.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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