Dimon sees 'bad recession' after 'bad planning' for pandemic

JPMorgan Chase CEO Jamie Dimon in his annual letter to shareholders Monday warned of a coming deep recession with financial shocks just like the 2008 Wall Road meltdown, after poor planning by the U.S. before the Covid-19 pandemic.

In the letter, Dimon advised shareholders that the nation's largest bank by belongings was prepared to keep lending billions to shoppers by means of the downturn although it was taking steps, together with stopping stock buybacks, to guard itself as much of the financial system shuts down.

"Halting buybacks was simply a very prudent motion — we do not know precisely what the longer term will maintain — however at a minimal, we assume that it'll embrace a nasty recession combined with some variety of monetary stress just like the worldwide financial disaster of 2008," he stated. "Our bank cannot be resistant to the consequences of this sort of stress."

Dimon, who just returned to work after emergency coronary heart surgical procedure, took a veiled swipe on the Trump administration and different U.S. leaders for failing to organize for the outbreak. He stated the pandemic "is just one example of the dangerous planning and management that have harm our nation."

"Typically extraordinary occasions in historical past may cause a change in the physique politic," he stated. "As a nation, we have been clearly not outfitted for this international pandemic, and the results have been devastating. However it's forcing us to work collectively, and it is enhancing civility and reminding us that all of us reside on one planet. E Pluribus Unum."

As Washington seems at ways to ease banking guidelines to encourage additional lending, Dimon stated "we would like our shareholders to know that we have now not requested any regulatory aid for ourselves" — though he does not assume it's a dangerous concept.

"Saying that we'll not ask for regulatory aid does not mean the government should not change some rules and laws, nevertheless," he stated. "For instance, some rules can improperly forestall wholesome, well-capitalized banks from lending freely in occasions of stress. This will harm clients as the crisis deepens. Leaving high-quality, obtainable liquidity undeployed in occasions of need is an opportunity ceaselessly misplaced."

Src: Dimon sees 'bad recession' after 'bad planning' for pandemic
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