Ten months ago, the chief of America's biggest bank warned that an economic "hurricane" was brewing and might slam the US. On Tuesday, Jamie Dimon of JPMorgan Chase sounded a lot more optimistic about the forecast, referencing "storm clouds" instead, reports Axios. In his annual letter to shareholders, Dimon spoke of healthy consumer spending, low unemployment, and a decade of "home and stock appreciation." But in making his first public comments about the recent failures of large banks, Dimon also sounded a note of caution, per the Wall Street Journal.
“As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come,” he wrote. Dimon then softened the assessment by pointing out that the current crisis "involves far fewer financial players" and that the circumstances "are nothing like what occurred during the 2008 global financial crisis." He criticized the banks in question for failing to manage risk, adding that "this wasn't the finest hour for many players."
In its coverage of the letter, Reuters highlights this passage:
- "The market's odds of a recession have increased," wrote Dimon. "And while this is nothing like 2008, it is not clear when this current crisis will end. It has provoked lots of jitters in the market and will clearly cause some tightening of financial conditions as banks and other lenders become more conservative."
While Axios highlights this:
- "When one talks about risk for too long, it begins to cloud your judgment. Looking ahead, the positives are huge."
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