JPMorgan Chase main government officer Jamie Dimon mentioned he expects the financial fallout from the coronavirus pandemic to contain a poor recession and strain the money technique in techniques related to the 2008 money crisis.
In his yearly letter to shareholders, Dimon mentioned the premier financial institution in the U.S. was moving into the crisis from a posture of power but the pandemic introduced difficulties that were being “dramatically different” from those people imagined in the Federal Reserve strain assessments.
“After the crisis subsides (and it will), our region really should comprehensively assessment all factors of our preparedness and response,” Dimon mentioned. “And we really should use the chance to carefully assessment the financial response and establish no matter if any extra regulatory changes are warranted to make improvements to our money and financial technique. There will be a time and area for that — but not now.”
Dimon mentioned the financial institution would take into consideration suspending its dividend in the celebration of an “extremely adverse” downturn in the U.S. economy. He mentioned the bank’s earnings would be “down meaningfully in 2020.”
He thinks the U.S. really should have experienced a “pandemic playbook” to answer to the crisis and identified as for nonpartisan remedies likely ahead.
The financial institution will take part in govt plans to deal with the financial difficulties posed by the crisis but it would not request any regulatory reduction.
Dimon has been working remotely because returning to perform adhering to a method to repair a tear in his aorta. The financial institution announced on March five that he experienced checked into a healthcare facility after dealing with chest pains and experienced been through unexpected emergency coronary heart medical procedures. Daniel Pinto and Gordon Smith ran the corporation when Dimon was recuperating.
The financial institution has additional than a hundred and eighty,000 personnel working from property and has saved 3 quarters of its financial institution branches open during the crisis, in accordance to the letter. It is also waving some fees and offering grace periods for mortgage and automobile-bank loan payments.
MANDEL NGAN/AFP through Getty Photos