JPMorgan Chase main government officer Jamie Dimon said he expects the economic fallout from the coronavirus pandemic to include things like a lousy economic downturn and pressure the fiscal technique in strategies equivalent to the 2008 fiscal crisis.
In his yearly letter to shareholders, Dimon said the largest financial institution in the U.S. was getting into the crisis from a placement of energy but the pandemic presented difficulties that were “dramatically different” from people imagined in the Federal Reserve strain assessments.
“After the crisis subsides (and it will), our nation should thoroughly overview all areas of our preparedness and response,” Dimon said. “And we should use the option to carefully overview the economic response and decide no matter whether any more regulatory variations are warranted to improve our fiscal and economic technique. There will be a time and location for that — but not now.”
Dimon said the financial institution would contemplate suspending its dividend in the occasion of an “extremely adverse” downturn in the U.S. financial state. He said the bank’s earnings would be “down meaningfully in 2020.”
He thinks the U.S. should have experienced a “pandemic playbook” to respond to the crisis and called for nonpartisan methods likely ahead.
The financial institution will participate in government applications to deal with the economic difficulties posed by the crisis but it would not request any regulatory reduction.
Dimon has been doing the job remotely given that returning to operate adhering to a procedure to mend a tear in his aorta. The financial institution introduced on March five that he experienced checked into a hospital after going through chest pains and experienced undergone crisis heart medical procedures. Daniel Pinto and Gordon Smith ran the business although Dimon was recuperating.
The financial institution has far more than one hundred eighty,000 workers doing the job from house and has kept three quarters of its financial institution branches open during the crisis, according to the letter. It is also waving some costs and offering grace durations for property finance loan and auto-mortgage payments.
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