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COVID-19 | Special Report
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. ere 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.
