JPMorgan CEO Jamie Dimon Says Banking Crisis Not Over — Warns of ‘Repercussions for Years to Come’

JPMorgan Chase CEO Jamie Dimon says the U.S. banking situation is not implicit and “there volition beryllium repercussions from it for years to come.” The enforcement added that caller slope failures “have importantly changed the market’s expectations,” and the likelihood of a recession person increased.

JPMorgan CEO Jamie Dimon connected U.S. Economy, Recession, and Banking Crisis

Jamie Dimon, president and CEO of JPMorgan Chase, shared his concerns regarding the U.S. economy, recession, and the banking situation successful his yearly missive to shareholders, published past week. The missive followed the caller illness of respective large banks successful the U.S., including Silicon Valley Bank and Signature Bank. Calling caller slope failures a “banking crisis,” Dimon warned:

The existent situation is not yet over, and adjacent erstwhile it is down us, determination volition beryllium repercussions from it for years to come.

“Recent events are thing similar what occurred during the 2008 planetary fiscal situation (which hardly affected determination banks),” the JPMorgan brag explained. “At that time, determination was tremendous leverage virtually everyplace successful the fiscal system.” In contrast, helium noted: “This existent banking situation involves acold less fiscal players and less issues that request to beryllium resolved.”

Commenting connected the Federal Reserve’s efforts to curb ostentation and aboriginal instrumentality hikes, Dimon opined:

If we person higher ostentation for longer, the Fed whitethorn beryllium forced to summation rates higher than radical expect contempt the caller slope crisis.

In addition, helium cautioned that quantitative tightening (QT) “may person ongoing impacts that might, implicit time, beryllium different force, pushing longer-term rates higher than presently envisioned. This whitethorn hap adjacent if we person a mild — oregon not-so-mild — recession, arsenic we saw successful the 1970s and 1980s.”

Dimon explained that the failures of Silicon Valley Bank and Credit Suisse “have importantly changed the market’s expectations, enslaved prices person recovered dramatically, the banal marketplace is down, and the market’s likelihood of a recession person increased.” He emphasized:

While this is thing similar 2008, it is not wide erstwhile this existent situation volition end.

Nonetheless, the JPMorgan enforcement insisted that the existent system is “pretty good” but reiterated that determination are “storm clouds ahead.”

What bash you deliberation astir JPMorgan CEO Jamie Dimon’s presumption of the system and the banking crisis? Let america cognize successful the comments conception below.

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