JPMorgan Chase CEO Dimon: US banking crisis will have long-term consequences

MOSCOW, April 4 – RIA Novosti. James Dimon, CEO of JPMorgan Chase, believes that the banking crisis that began in the US following the bankruptcy of Silicon Valley Bank is not over yet and will have long-term consequences. literature to investors.

“As I write this letter, the current crisis is not over yet, and even if it is left behind, its effects will be felt in the years to come,” the CEO said in a public letter.

But it’s also important that recent events are completely different from what happened during the 2008 global financial crisis.”

In the letter, Dimon commented on the emerging view among analysts that, among other things, the problems that the crisis created for regional banks were beneficial to their larger rivals, calling this view absurd because “any crisis undermining America. Confidence in their banks hurts all banks in general.”

On March 10, regulators in the state of California closed Silicon Valley Bank, one of the twenty largest commercial banks in the United States. This was the largest bank failure in the United States since the 2008 financial crisis. The collapse of the SVB was associated with a rise in the Fed’s key rate, which led to the depreciation of assets on the balance sheets of many financial institutions. It was also announced that the crypto-focused bank Silvergate will close on March 8, while the similar New York-based Signature Bank will be closed on March 12.

The JP Morgan Chase Investment Bank was founded in 1799. It is one of the world leaders in providing investment banking services and trust management.