July 13, 2024

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Jamie Dimon Warns of a ‘Bad Recession’ Due to Coronavirus Crisis

JPMorgan Chase main govt officer Jamie Dimon explained he expects the economic fallout from the coronavirus pandemic to consist of a bad recession and pressure the fiscal program in ways very similar to the 2008 fiscal disaster.

In his annual letter to shareholders, Dimon explained the largest bank in the U.S. was getting into the disaster from a position of strength but the pandemic presented challenges that had been “dramatically different” from these imagined in the Federal Reserve stress checks.

JP Morgan Chase CEO Jamie Dimon

“After the disaster subsides (and it will), our region should thoroughly assessment all features of our preparedness and response,” Dimon explained. “And we should use the option to closely assessment the economic response and ascertain whether or not any extra regulatory modifications are warranted to make improvements to our fiscal and economic program. There will be a time and spot for that — but not now.”

Dimon explained the bank would think about suspending its dividend in the party of an “extremely adverse” downturn in the U.S. economic climate. He explained the bank’s earnings would be “down meaningfully in 2020.”

He thinks the U.S. should have experienced a “pandemic playbook” to answer to the disaster and referred to as for nonpartisan methods heading ahead.

The bank will take part in governing administration systems to handle the economic challenges posed by the disaster but it would not request any regulatory reduction.

Dimon has been working remotely considering the fact that returning to operate adhering to a course of action to fix a tear in his aorta. The bank introduced on March five that he experienced checked into a healthcare facility soon after suffering from upper body pains and experienced gone through emergency coronary heart surgery. Daniel Pinto and Gordon Smith ran the corporation when Dimon was recuperating.

The bank has a lot more than one hundred eighty,000 personnel working from dwelling and has saved three quarters of its bank branches open throughout the disaster, according to the letter. It is also waving some fees and providing grace intervals for home finance loan and automobile-financial loan payments.

MANDEL NGAN/AFP by means of Getty Illustrations or photos