“Bad recession” ahead, warns JPMorgan CEO Jamie Dimon.
The only current CEO of a major bank to have led his company through the 2008 financial crisis used this year’s annual letter to shareholders to refer to the coronavirus impact on the economy.
He added that the U.S. will soon enter a “bad recession,” and that banks will likely see financial stress similar to what they experienced in 2008 during the global financial crisis. For now, he said, it remains unclear “how fast or slow the recovery will be,” or how his bank would fare in the crisis despite announcing that JPMorgan is participating in the government’s small business relief program.
“At a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008.”
“Entering into a crisis is not the time to figure out what you want to be. You must already be a well-functioning organization prepared to rapidly mobilize your resources, take your losses, and survive another day for the good of all your stakeholders.”
You can learn more about the Jamie Dimon letter here.
