JP Morgan Chase and Co. Chief Executive James Dimon predicts a bad recession in the U.S. similar to that of the global financial crisis which happened a decade ago.
In his annual shareholder letter published this Monday, Mr. Dimon takes a swipe at the U.S, comparing the ongoing Covid-19 crisis to that of the Great Recession, with a financial stress of the similar nature of the 2008 global financial crisis. He notified in the letter that JP Morgan is capable of handling what he called to be a “bad recession”.
In internal stress testing, Mr. Dimon also stated that the bank will be able to lend with U.S. gross domestic product dropping 35% in the second quarter. The banker, who leads JP Morgan with over 250,000 people, has closed some of its branches and has seen the effect of the coronavirus on its trading floor.
Dimon notes that the bank has been working closely with the Federal government and appreciates the Fed’s efforts for “already dramatically reducing the financial stress in the system” and bolsters the economic conditions of the nation with no impact on the safety, regulatory oversight, and soundness.