JPMorgan Chase & Co. Chairman and Chief Executive Jamie Dimon said new deposit fee restrictions have compelled the New York company to shy away from building new branches in lower-income areas.
The already low-margin deposit services favored by the least affluent are becoming break-even propositions thanks to the Durbin amendment, which will cost JPMorgan Chase $1 billion a year in revenue, Dimon said at the company's annual investor day on Tuesday.
That is why JPMorgan Chase has decided to focus on building new branches mainly in well-to-do neighborhoods as it sharply scales back on new openings in the coming years, he said.
"That's what the legislation did. We're simply reacting," he said.
JPMorgan Chase announced on Tuesday that it would
