JP Morgan Chief Says US Banking Crisis Still Not Over
TEHRAN (Tasnim) – The CEO of American JP Morgan Bank is of the opinion that the turmoil in the US financial sector has not yet ended following the bankruptcy of Silicon Valley Bank, saying that its adverse effect will remain in place for years.
The banker, Jamie Dimon, in his annual letter to stockholders of the bank emphasized that turn of events has "significantly changed market expectations tremendously, so that bonds and securities’ prices have improved dramatically.
Accordingly, the stock market has fallen, and the possibility of the market downturn has increased significantly, he added.
Dimon further warned that the currenct crisis has not yet over, adding that even if this fianncial crisis is settled, its outcome will remaim for the coming years.
In early March 2023, mass influx of people to withdraw their capital from their deposit account caused Silicon Valley Bank (SVB) and Signaturer Bank to face bankruptcy for a few days.
Given the above issue, the main lender i.e. First Republic Bank received a $30 billion worth of deposit from large bank including JP Morgan.
So, this fianancial crisis spread to Europe as Switzerland-based “Credit Suisse” Bank faced several problems.
Dimon also called for more regulations in the US financial sector and claimed that policymakers should be more cautious in this regard.