WASHINGTON: The US financial institution disaster that rattled world markets ultimate month is almost certainly nearing the top, even supposing extra unexpected screw ups happen, JPMorgan Chase & Co Chief Executive Officer Jamie Dimon stated.
Only a handful of lenders have the issues that topple Silicon Valley Bank, and when the trade begins reporting quarterly income subsequent week, the numbers it will likely be just right, Dimon instructed CNN in an interview Thursday. Asked if extra financial institution screw ups would possibly come, he stated he did not know.
“But if there are, I know honestly they’ll be resolved and it will probably be the last of them,” Dimon stated. “I think we’re getting near the end of this particular crisis.”
Dimon, 67, has run JPMorgan since 2005, and is the one CEO from the 2008 monetary disaster nonetheless in fee of a giant financial institution. In a CNN file previous Thursday, he stated the hot turmoil within the monetary trade had almost certainly made a US recession much more likely, despite the fact that a downturn may not essentially occur.
“We are seeing people reduce lending a little bit, cut back a little bit and pull back a little bit,” the broadcaster quoted him as pronouncing.
US regional banks had been in turmoil after a run on deposits struck SVB and several other different lenders. Rising rates of interest depressed the worth of bonds they purchased when rates of interest have been low, and a surprising surge in buyer withdrawals pressured a few of them to promote the ones belongings at a loss.
Dimon’s remarks construct on an evaluate he introduced in an annual letter to shareholders previous this week, by which he stated that the cave in of Silicon Valley Bank and the emergency sale of Credit Suisse Group AG to UBS Group AG had “significantly changed the market’s expectations” for the economic system.
“It has provoked lots of jitters in the market and will clearly cause some tightening of financial conditions as banks and other lenders become more conservative,” he stated within the letter. Unclear, he wrote simply days in the past, whether or not shopper spending might gradual.
The govt should not overreact to the banking disaster through implementing extra rules at the trade, Dimon stated.
Only a handful of lenders have the issues that topple Silicon Valley Bank, and when the trade begins reporting quarterly income subsequent week, the numbers it will likely be just right, Dimon instructed CNN in an interview Thursday. Asked if extra financial institution screw ups would possibly come, he stated he did not know.
“But if there are, I know honestly they’ll be resolved and it will probably be the last of them,” Dimon stated. “I think we’re getting near the end of this particular crisis.”
Dimon, 67, has run JPMorgan since 2005, and is the one CEO from the 2008 monetary disaster nonetheless in fee of a giant financial institution. In a CNN file previous Thursday, he stated the hot turmoil within the monetary trade had almost certainly made a US recession much more likely, despite the fact that a downturn may not essentially occur.
“We are seeing people reduce lending a little bit, cut back a little bit and pull back a little bit,” the broadcaster quoted him as pronouncing.
US regional banks had been in turmoil after a run on deposits struck SVB and several other different lenders. Rising rates of interest depressed the worth of bonds they purchased when rates of interest have been low, and a surprising surge in buyer withdrawals pressured a few of them to promote the ones belongings at a loss.
Dimon’s remarks construct on an evaluate he introduced in an annual letter to shareholders previous this week, by which he stated that the cave in of Silicon Valley Bank and the emergency sale of Credit Suisse Group AG to UBS Group AG had “significantly changed the market’s expectations” for the economic system.
“It has provoked lots of jitters in the market and will clearly cause some tightening of financial conditions as banks and other lenders become more conservative,” he stated within the letter. Unclear, he wrote simply days in the past, whether or not shopper spending might gradual.
The govt should not overreact to the banking disaster through implementing extra rules at the trade, Dimon stated.