JPMorgan Chase CEO Jamie Dimon mentioned on Thursday that the current banking crisis puts “another weight on the scale” towards recession.
“We are seeing men and women cut down lending a small bit, reduce back a small bit, pull back a small bit,” Dimon mentioned in an exclusive interview with CNN’s Poppy Harlow. “It will not necessarily force a recession, but it is recessionary.”
Immediately after Silicon Valley Bank and Signature Bank abruptly collapsed inside days of one particular yet another final month — becoming the second- and third-biggest bank failures in U.S. history — it triggered fears of contagion and a a lot more widespread banking crisis.
Very first Republic Bank, which also appeared to be teetering on the edge, received a $30 billion infusion as element of an business bailout from 11 big banks, such as JPMorgan Chase.
Dimon warned on Thursday that he does not feel the banking scare is more than very but but mentioned he is “hoping it will resolve rather shortly.”
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“Failure is okay,” he added of the current bank failures. “You just do not want this domino impact.”
His comments to CNN echoed the sentiments expressed in his annual letter to shareholders on Tuesday.
“As I create this letter, the existing crisis is not but more than, and even when it is behind us, there will be repercussions from it for years to come,” Dimon mentioned.
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