JPMorgan Chase (JPM.US) initiates "group mockery" against European counterparts: only by growing and strengthening can we meet customer needs.

Filippo Gori, co-head of the global banking division at JPMorgan Chase (JPM.US), said that he believes the demand for large banks in the entire European continent is increasing, especially those operating in different countries. Gori said in an interview during the World Economic Forum in Davos, Switzerland: "Banks need scale to better serve customers and to face the various challenges of the world. For Europe, it would be better to have more large pan-European companies. We welcome competition because competition makes us run faster. This is also beneficial for Europe." At the time of his comments, bank transactions across Europe were heating up, with some large banks attempting to acquire local and overseas competitors. For example, Spain's BBVA has launched a hostile takeover bid for its smaller rival, Sabadell. Commerzbank AG in Germany is formulating a defensive strategy to fend off a potential acquisition by Italy's UniCredit SpA. This Italian bank is also bidding to acquire its domestic competitor, Banco BPM SpA. In all three transactions, the deals have faced opposition from the target companies or other shareholders. Legal challenges may also hinder the completion of mergers. Europe has been seeking to form banking alliances in order to better integrate its banks. Since the credit crunch in 2008, the financial system in the region has become fragmented between different countries. Europe has been planning this initiative ever since, but the plan has stalled due to concerns from some countries about sharing risks. "Europeans see banking as an area of change, but we need to be mindful of legal challenges that could impede future growth," Gori said, without commenting on any specific transactions. "While transactions are possible if you already have licenses in other countries, there are currently limited options. Banking alliances should eventually be established." Last year, Gori was promoted alongside Doug Petno to co-head the newly established global banking division at JPMorgan Chase, which integrates the bank's commercial, corporate, and investment banking businesses. As part of this change, Gori was also appointed as head of JPMorgan Chase's Europe, Middle East, and Africa operations, relocating from Hong Kong to London. "One of our priorities in Europe, the Middle East, and Africa this year is to prepare our banking business for what could be a very busy year," Gori said. "We are also considering making more investments in financial technology." The newly elected President Trump is expected to introduce a more business-friendly regulatory environment in the United States. Like many of his peers, Gori said his bank is preparing for an increase in equity capital markets activities and mergers and acquisitions. Private equity exits should also boost transaction volumes. Gori said that in recent years, many acquisition funds have been put on hold due to interest rate hikes by central banks around the world, which means that the demand for transactions from these clients has been suppressed. "People are more excited," he said. "The new government's attitude towards regulation is more open, which clearly is revitalizing the market."