Jamie Dimon Warns of a ‘Bad Recession’ Due to Coronavirus Crisis

JPMorgan Chase chief executive officer Jamie Dimon reported he expects the financial fallout from the coronavirus pandemic to incorporate a negative recession and pressure the money program in methods related to the 2008 money disaster.

In his once-a-year letter to shareholders, Dimon reported the biggest lender in the U.S. was moving into the disaster from a posture of strength but the pandemic presented issues that were being “dramatically different” from those people imagined in the Federal Reserve anxiety checks.

JP Morgan Chase CEO Jamie Dimon

“After the disaster subsides (and it will), our state must completely review all aspects of our preparedness and reaction,” Dimon reported. “And we must use the chance to closely review the financial reaction and decide no matter if any additional regulatory adjustments are warranted to increase our money and financial program. There will be a time and area for that — but not now.”

Dimon reported the lender would look at suspending its dividend in the celebration of an “extremely adverse” downturn in the U.S. economy. He reported the bank’s earnings would be “down meaningfully in 2020.”

He believes the U.S. must have had a “pandemic playbook” to reply to the disaster and identified as for nonpartisan methods going ahead.

The lender will take part in governing administration programs to handle the financial issues posed by the disaster but it would not ask for any regulatory reduction.

Dimon has been functioning remotely considering the fact that returning to work following a procedure to maintenance a tear in his aorta. The lender announced on March five that he had checked into a hospital immediately after dealing with chest pains and had been through crisis coronary heart surgical treatment. Daniel Pinto and Gordon Smith ran the firm although Dimon was recuperating.

The lender has additional than one hundred eighty,000 employees functioning from home and has saved three quarters of its lender branches open in the course of the disaster, according to the letter. It is also waving some costs and supplying grace durations for home finance loan and car-loan payments.

MANDEL NGAN/AFP by means of Getty Illustrations or photos