Additional Coverage:
As Vice President Kamala Harris emerges as the likely Democratic nominee for the upcoming presidential election, her interactions with corporate leaders are drawing renewed attention. This spotlight returns to an intense 2011 phone call with JPMorgan Chase CEO Jamie Dimon, which erupted into a heated argument while Harris was California’s Attorney General.
In her 2019 autobiography “The Truths We Hold: An American Journey,” Harris describes the confrontation as a fierce tug-of-war. She was negotiating with major Wall Street banks, including Wells Fargo, Bank of America, and JPMorgan Chase, for settlements to aid homeowners affected by foreclosures during the Great Financial Crisis.
Initially, the banks’ compensation offers for California stood between $2 billion to $4 billion, which Harris rejected as inadequate. After intense negotiations, and the memorable direct call with Dimon, the banks substantially increased their settlement offer to approximately $20 billion.
During a recent campaign event, Harris touted this achievement, illustrating her dedication to taking on major financial institutions and securing substantial relief for Californian homeowners. The discussion with Dimon was a pivotal moment, with Harris emphatically defending the interests of homeowners against Dimon’s concern for his shareholders.
More than a decade on, Harris’s record on these issues comes into play as she reconnects with corporate figures in the U.S. Despite previous conflicts, efforts have been made to mend fences; Harris and Dimon even shared a lunch at the White House in March. This comes at a time when the Biden administration has been critical of various corporate practices, calling for increased corporate taxes and strict antitrust enforcement.
Despite these tensions, Harris has demonstrated a willingness to engage with corporate leaders to advance policy goals, such as urging major banks to expedite the distribution of pandemic relief loans to low-income borrowers in 2021.
The evolution from her forceful negotiation stance during the housing crisis to her current engagements with corporate America highlights Harris’s pragmatic approach to governance. Her ability to secure a massively improved settlement in 2012, which provided $18.4 billion in debt relief and $2 billion in additional financial aid to Californians, underscores her commitment to achieving fair outcomes, even in the face of formidable opposition.