NEW YORK, Might 11 (Reuters) – JPMorgan Chase & CO (JPM.N) CEO Jamie Dimon stated on Thursday the financial institution is convening weekly conferences to debate the implications of a possible U.S. default, in response to an interview on Bloomberg TV.
That financial institution’s so-called “struggle room” will in all probability begin day by day conferences on Might 21, then ramp as much as thrice a day if the standoff over the debt restrict drags on, he stated.
“We have to be very cautious about getting shut” to a default, which might trigger a monetary panic, he added.
“It’s extremely unlucky, it is time-consuming, hopefully it will not occur, but it surely impacts contracts, collateral, clearing homes, purchasers.”
Turning to the banking disaster, Dimon stated regional banks are “fairly robust” after reporting good earnings. Nonetheless, the trade and regulators ought to “simply be ready for issues.”
He expects extra regulation on the banks, however careworn the necessity to proceed fastidiously. Dimon hopes regulators, together with the U.S. Securities and Change Fee (SEC), will look into quick promoting on financial institution shares and potential collusion by way of social media posts.
Regardless of these issues, Dimon blamed the current banking disaster on CEOs and boards of failed lenders.
JPMorgan has hedged First Republic Financial institution’s rate of interest publicity after shopping for the corporate when it collapsed into receivership earlier this month, he added. Whereas he expects blowback from the acquisition, Dimon stated the U.S. wants massive banks to perform advanced duties akin to banking multinational firms.
Reporting by Tatiana Bautzer, enhancing by Lananh Nguyen and Toby Chopra
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