The Strategist

JPMorgan may lose nearly $1B due to Ukraine-Russia conflict



04/05/2022 - 10:16



Losses of JP Morgan Chase, one of the world's largest investment banks, due to Russia's military operation in Ukraine could amount to about $1 billion, the bank's head Jamie Dimon said.



Daniel Grass
Daniel Grass
"We're not concerned about direct engagement with Russia, although we could still lose about $1 billion," Mr. Dimon said in a letter to investors cited by Reuters.

The bank predicts the confllict in Ukraine and subsequent anti-Russian sanctions will result in a 12.5 percent decline in Russian GDP by midyear. That decline would surpass the 10 percent drop in GDP since the 1998 default, the bank said.

JP Morgan Chase predicts that over the next few years, in addition to the military operation in Ukraine, the world economy will be affected by high inflation. The bank’s head believes that an increase in the U.S. Federal Reserve's discount rate in response to rising consumer prices could be "significantly higher than markets expect.

source: reuters.com




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