J.P. Morgan CEO: Cybersecurity Spending to Double
James Dimon Appears on Panel in First Public Remarks Since Throat Cancer Treatment
J.P. Morgan Chase & Co. Chairman and Chief Executive James Dimon said the bank would double spending on cybersecurity over the next five years, his first public remarks following the data breach that hit the nation’s largest bank this summer.
Mr. Dimon was speaking in his first public appearance since July, when he disclosed that he had been diagnosed with throat cancer.
“We had a little problem recently,” Mr. Dimon told the audience at the Institute of International Finance panel discussion, referring to the widespread hack into J.P. Morgan’s servers. Last week, J.P. Morgan said the breach had compromised contact information—but not sensitive account data—for 76 million households and about seven million small businesses.
He said J.P. Morgan over the next four to five years was likely to double its spending on cybersecurity from $250 million annually in 2014. “We have to be vigilant,” he said, adding that issues around cybersecurity “will happen for a long time.”
“We need help and [need to continue] working together with the government,” he added. “The government knows more than we do.”
Investigators have said at least 13 companies were targeted by the unknown hackers, making it one of the most significant cyberattacks disclosed in the U.S. To date, only J.P. Morgan and Fidelity Investments are believed to have had data stolen. An unspecified number of companies’ systems had some contact from computer addresses linked to the hackers but didn’t lose any data, according to people close to the investigation.
A Fidelity spokesman said Thursday the company “continues to deploy multiple layers of security to help protect the privacy of our customers.…We can reiterate and have confirmed with the FBI that there is no indication Fidelity customer accounts, information, services or systems were affected by the recent attack that impacted [J.P. Morgan].”
At Friday’s panel discussion, on issues from regulation to the global economy, Mr. Dimon seemed close to his usual self, though somewhat slimmer.
His voice was clear and he grinned a few times at comments made by the three other executives on the stage: Deutsche Bank Co-Chief Executive Officer Anshu Jain, Morgan Stanley Chairman and CEO James Gorman and Bank of America Corp. Chairman and CEO Brian Moynihan. Mr. Jain welcomed Mr. Dimon back and said all on stage were pleased that he was able to make the event.
After finishing roughly eight weeks of treatment for cancer in September, Mr. Dimon has started ramping up his travel and client meeting schedule.
Mr. Dimon arrived in Washington on Thursday and took part in a joint IIF/ Financial Services Forum meeting for about three hours, which included CEOs from the world’s largest banks, a person familiar with his schedule said.
The J.P. Morgan chief remains under the close watch of doctors, who will monitor his progress during the coming months to determine whether he is cancer-free, people familiar with the matter have said. Mr. Dimon may still face additional side effects and, possibly, more treatment, and doctors will continue to watch for problems for several years, the people said.
At the hourlong panel session Friday, Mr. Dimon talked about interest rates, the importance of weeding out bad actors at banks and his belief that China’s economy will avoid a “hard landing.” He said he was “less worried” about growth slowing in China and more focused on moves toward market overhaul and democracy in the country over the next few years.
After the panel discussion was over, Mr. Dimon shook hands with the other executives and walked briskly toward an exit at the side of the room. Asked how he was feeling, he replied “Good, thank you. I’m OK.”
