How exactly does Bill Daley, brother of the Chicago mayor and longstanding chairman of JPMorgan's Midwest Region,
expect to make a viable run for U.S. Senate in Illinois with headlines like this surfacing?
JP Morgan Chase Expanding India Outsourcing By 25...
How exactly does Bill Daley, brother of the Chicago mayor and longstanding chairman of JPMorgan's Midwest Region, expect to make a viable run for U.S. Senate in Illinois with headlines like this surfacing?
JP Morgan Chase Expanding India Outsourcing By 25%?
In response to this news, 42 members of Congress -- including Illinois Reps. Phil Hare, Luis Gutierrez, and Bobby Rush -- signed a letter yesterday to JPMorgan CEO Jamie Dimon expressing outrage at "the potential actions of [the] company to outsource tens of thousands of U.S. jobs." If Daley were an announced candidate, you can be sure he'd be answering for this as well. He'd also be facing questions about why his company took $25 billion in federal bailout funds, only to use the money to buy other banks -- rather than start lending.
The same goes for the Republic Windows controversy last December. As we noted at the time, JPMorgan had a direct ownership stake in the shuttered factory (estimated at around 40 percent) and therefore almost certainly had a voice in the decision to liquidate the company without setting aside the wages it owed to its laid-off workers under federal law.
At a time when nationwide anti-bailout protests are brewing, these are the kinds of stories that could come back to haunt Daley.
Read the full letter from congressional members below:
Dear Mr. Dimon,
We are outraged by the potential actions of your company to outsource tens of thousands of U.S. jobs as well as your comments made to the United States Chamber of Commerce on Thursday. We would like to remind you that the taxpayers of the United States of America contributed $25 billion to your company to help stabilize our economy--not send jobs overseas.
Just yesterday you indicated that the "constant vilification of corporate America" by our public officials is what is hurting our country. This pronouncement comes less than 72 hours after reports surfaced that your institution plans to spend nearly $400 million on outsourcing of jobs to India--an increase of 25 percent. JP Morgan Chase is not a victim of constant vilification, but it will be viewed and criticized based on actions like this outsourcing policy.
651,000 Americans lost their jobs in February. 3.8 million Americans lost their jobs in the last 12 months. Every day an average of 21,000 men and women receive a pink slip and with it the fear of an uncertain economic future. How should these American workers, many of them your consumers, be expected to have hope for a better future when the very companies they contributed to through the Troubled Assets Relief Program outsource the jobs they desperately need?
In your testimony on Feb. 11, 2009 to the House Committee on Financial Services you said that you looked forward to working with the committee "to help find solutions to our current economic problems, to keep American families in their homes and to begin to restore confidence in our financial markets." There is no better way to make your words immediately ring hollow than taking actions to outsource thousands of jobs that Americans could perform.
In the coming days, we expect to hear more about your plans to invest $400 million in the workers of India and the impact your actions will have on communities across America including potential future layoffs.
One source from an article published in the Economic Times of India stated almost enthusiastically that "JP Morgan is one of the first banks in the U.S. to flesh out its outsourcing strategy ever since the banking meltdown..." This is one area where your institution should be ashamed of leading. Your actions will be watched--and possibly followed--by other institutions in the financial sector. Trends of this nature concern us and will be followed closely as well.
Rep. Mary Jo Kilroy, Rep. Barney Frank, Rep. Loretta Sanchez, Rep. Charles Wilson, Rep. Marcy Kaptur, Rep. Betty Sutton, Rep. Tomas Perriello, Rep. Joe Baca, Rep. Diane Watson, Rep. Peter Welch, Rep. Charles Gonzalez, Rep. Lynn Woolsey, Rep. Al Green, Rep. Luis Gutierrez, Rep. Paul Hodes, Rep. Tim Ryan, Rep. Timothy Bishop, Rep. Paul Hodes, Rep. Stephen Lynch, Rep. Eric Massa, Rep. Robert Brady, Rep. Chellie Pingree, Rep. Bobby Rush, Rep. John Oliver, Rep. Chaka Fattah, Rep. Dennis Kucinich, Rep. Rubén Hinojosa, Rep. James McGovern, Rep. Elijah Cummings, Rep. Michael Michaud, Rep. Emanuel Cleaver, Rep. Linda Sánchez, Rep. Christopher Carney, Rep. Steven Rothman, Rep. Raúl Grijalva, Rep. Phil Hare, Rep. Fortney Peter Stark, Rep. Michael Capuano, Rep. Daniel Maffei, Rep. Harry Teague, Rep. Paul Tonko, Rep. John Dingell