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Exclusive | Big Banks, Worried About Being Trump’s Next Target, Race to Appease Republicans - WSJ

1. Big banks, including JPM, face political pressures from Republican states. 2. Banks fear federal repercussions from Trump over 'debanking' executive orders. 3. Meetings with officials aim to counter allegations of industry boycotts. 4. JPM and others are revising policies to avoid discrimination allegations. 5. Financial ties with blacklisted states may threaten banks' revenue sources.

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FAQ

Why Bearish?

Political pressures and potential loss of state contracts could adversely affect JPM's revenue. For example, past blacklisting led to decreased business opportunities for banks involved.

How important is it?

Political alignment and backlash against JPM's policies can lead to significant market volatility. Given its size and influence, JPM's response will be closely monitored.

Why Short Term?

Immediate concerns regarding state blacklists and potential federal actions may impact JPM quickly. Historical instances show swift negative impacts from regulatory or political changes.

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