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Jamie Dimon: We’re Getting a ‘Bad Recession’

JPMorgan Chase CEO Jamie Morgan expects the coronavirus crisis to include a “bad recession” and elements of financial strain similar to the 2008 downturn, he said in his annual report to shareholders.

“We don’t know exactly what the future will hold—but 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,” Dimon said in his annual shareholder’s letter. “Our bank cannot be immune to the effects of this kind of stress.”

Dimon, who has returned to JPMorgan after a heart procedure last month, added that while JPMorgan “will participate in government programs to address the severe economic challenges, we will not request any regulatory relief for ourselves.”

“After the crisis subsides (and it will), our country should thoroughly review all aspects of our preparedness and response,” Dimon said. “And we should use the opportunity to closely review the economic response and determine whether any additional regulatory changes are warranted to improve our financial and economic system. There will be a time and place for that—but not now.”

Dimon adds that the bank’s earnings “will be down meaningfully in 2020” because of the coronavirus. He also warned that in an “extremely adverse” downturn in the U.S. economy, JPMorgan would probably consider suspending its dividend to preserve capital.

Dimon also praised the Federal Reserve’s actions to relieve strains in financial markets, saying the central bank could take several more steps, including offering additional lending facilities and relaxing capital and liquidity requirements to boost the system if needed.

For consumers, Dimon notes that JPMorgan is offering relief measures, including providing a 90-day grace period for mortgage and auto loan/lease payments and waiving any associated late fees.

“We have the resources to emerge from this crisis as a stronger country,” Dimon said.

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.

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