JPMorgan CEO Jamie Dimon is warning the U.S. is acting more like Europe when it comes to defense.
Speaking on Tuesday at the Hill and Valley Forum, which aims to bring together leaders from Washington and Silicon Valley, the longtime JPMorgan leader, who led his bank through the 2008 housing crisis, noted he was “deeply frustrated” with certain policies in the U.S. that he said set the country back.
One example is the web of rules, compliance procedures, and involvement of Congress that he said slows the procurement process for the Department of War (DOW) and prevents it from being adaptable in times of conflict that require quick pivots.
“We’ve become like Europe; we’re unable to move and change—change budgeting, change procurement. You know, let people do what they need to do.”
One suggestion Dimon thinks would help improve the country’s red tape? Bringing in more private companies to get involved in making military equipment. To be sure, private companies are already participating actively in the U.S. defense industrial base. Although companies such as Northrop Grumman, Lockheed Martin, and RTX (previously Raytheon) have dominated military contracts for years, the U.S. government is increasingly looking to newcomers such as SpaceX, Palantir, and Anduril for their tech capabilities. Earlier this month, the DOW awarded Anduril a five- to 10-year enterprise contract worth up to $20 billion, which is similar to one it would sign with a major defense contractor.
