Backing Boeing Is Not a Security Plan. Backing Its Military Business Is.
JPMorgan's Jamie Dimon argues that keeping the country safe means choosing specific products and divisions, not big company names.
WSJ What's News · Violent Rioting Sweeps FranceJamie Dimon, the head of JPMorgan Chase who is leading the bank's push into national security investing, was asked a blunt question. A lot of this looks like business the bank would have done anyway, so what is actually new and different?
His answer, as he puts it, was about being specific. "It wasn't Boeing. It was Boeing Military Division," Dimon said. He argues that security investing is not about picking famous companies, but about picking the slice of a company that helps the country stay safe.
By his account, that distinction runs through the whole effort. It was not Exxon, the oil giant, or energy in general, he said. It was LNG, which is natural gas cooled to liquid form so it can travel by ship, "going to Europe because they need it for security," as Dimon put it. It was not all artificial intelligence, the technology that lets computers learn and make predictions. It was not the AI that recommends videos or writes emails for consumers, but some of the AI built for the military.
Dimon said the same test applies elsewhere. He counts power lines and electrical grids as security investments. "Security is different for every country," Dimon said. He said the bank has extended the work to allies including Germany, Italy, France, Britain, Poland, Australia, Japan, and South Korea.
The other difference, Dimon said, is timing. The bank is backing firms sooner than it usually would. These are businesses that need money to build a factory to fulfill a contract, but cannot win the contract until they prove they can build the factory. Dimon said the bank is trying to bridge that gap.
The point is the part, not the whole. A household name may make passenger jets, pump oil, or sell consumer software. What matters for security, in his view, is whether a particular division, shipment, or program meets a security need.
Questions people ask
What does Boeing's military division actually make?
Boeing Defense, Space and Security builds military aircraft, helicopters, missiles, satellites, and related systems, separate from Boeing's commercial airplane business that makes passenger jets like the 737. It is a major contractor to the U.S. military and to allies. Its work includes fighter jets, refueling tankers, rotorcraft, and space and weapons programs.
Why does LNG for Europe count as a security investment?
LNG is natural gas chilled into a liquid so it can be carried by ship. After Russia cut pipeline gas supplies to Europe following its invasion of Ukraine, European countries needed other sources of fuel for heating, electricity, and industry. U.S. shipments helped fill that gap, so financing them supports an ally's energy supply.
What is JPMorgan's security investment program?
It is called the Security and Resiliency Initiative, and it is meant to direct bank financing toward industries tied to U.S. economic and national security. The bank has said it plans to facilitate up to $1.5 trillion in related financing activity over time, plus $10 billion in direct investments. Areas include defense technology, advanced manufacturing, energy, and critical supply chains.