JP Morgan Unsure over Twin Skyscraper Project
Jamie Dimon, chief executive of JP Morgan stated that he is yet to decide on working with the original plans for a new headquarters, amidst negative publicity that the banking market has been receiving of late. This will mean that either the twin tower project will be scrapped or a sum of $3b will be spent towards making a new plan.
Although plans have been drawn up, the American bank is as yet reluctant to go ahead with setting up an extravagant headquarters. Senior executives are worried that this may lead banking regulators to crack down on all large financial institutions.
A real estate industry source claims that the company seems to be in a fix, caught between the need to expand and the looming concern of political repercussions for large scale expenditure.
The plans illustrate a massive shared office business complex spread across an area of three million sq.ft. The headquarters would consist of two towers facing the river Thames with a low rise office in the centre providing a link between the two buildings.
The final decision clearly vests with Dimon who will have to choose a solution that appeases the regulators. However, in keeping them happy, he will need to take into consideration the cost of scaling down the expansion plans.
The federal bailout funds of $25b which JPMorgan received during the recession, has been repaid. However, that is not to say that banking regulators will refrain from challenging any large expenses in light of the recent attack on Goldman Sachs for defrauding its investors.
Spokespersons for Dimon and JPMorgan have declined to comment on the problem with the intention of making a statement only once a conclusion has been arrived at.
