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Opinion
Paul J. Davies

JPMorgan and Citi Pay Raises Leave Less for Investors

The big banks reported higher costs linked largely to compensation that will most likely continue. 

Rising wages are a good thing for workers, Jamie Dimon said, and businesses “shouldn’t be crybabies about it.”

Rising wages are a good thing for workers, Jamie Dimon said, and businesses “shouldn’t be crybabies about it.”

Photographer: Michel Euler/AFP/Getty Images

The great economic rebalancing between capital and labor is finally here — in banking at least.

The share prices of JPMorgan Chase & Co, Citigroup Inc. and most other U.S. banks tumbled on Friday after both banks reported higher costs for 2021 and predicted more inflation to come, most of which is being driven by higher pay.