The Strategist

JPMorgan's Head warns of a large-scale recession

04/07/2020 - 03:21

The coronavirus pandemic will result in a serious recession and financial turmoil that will resemble the 2008 crisis, said Head of JPMorgan. He is the only one of the current leaders of the largest American banks who was at the helm during the financial crisis 12 years ago.

World Economic Forum
World Economic Forum
JPMorgan Bank CEO Jamie Dimon warned of an impending significant economic collapse due to the coronavirus pandemic. This is stated in his annual letter to investors, which was published by the bank.

“We don’t know exactly what will happen in the future, but at the very least, we believe there will be a severe recession combined with some financial shock similar to the global financial crisis of 2008,” wrote Dimon. He added that JPMorgan will not be able to avoid consequences of these difficulties, but will not ask the authorities for regulatory exemptions for itself, CNBC reports.

Jamie Dimon became the “official representative” of Wall Street thanks to his frequent appearances. For nearly 15 years, he has been serving at the head of the largest and most profitable US bank, Bloomberg notes. Dimon is the only one of the current leaders of the largest American banks who was at the helm during the financial crisis 12 years ago, the agency said. Wall Street itself closely follows the letters of Dimon, The New York Times pointed out. The last time Dimon commented on the situation around the coronavirus in late February, when the virus was not yet widespread in the United States. After that, Head of JPMorgan underwent heart surgery. His absence was “felt” in the sector while governments took steps to isolate millions of people at home to slow the spread of infection, Bloomberg notes.

A new 23-page letter of Dimon was the shortest since March 2008, the agency added. Prior to this, his appeals to investors gradually became more extensive and more than three times longer than when he first assumed office in 2005. Dimon writes the letters himself, after which they are reviewed and edited by various departments of the bank.

According to the latest data, almost 1.3 million cases of coronavirus infection have been recorded in the world. 70 356 people became victims of the disease. 


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