JPMorgan Chase CEO Jamie Dimon says banking crisis ‘not over yet’ in annual shareholder letter
Jamie Dimon, CEO of JPMorgan Chase, said in its annual report: letter Addressing shareholders on Tuesday, he said the deposit crisis that has roiled the banking industry is “not over yet” and could affect the financial services sector “for years to come.”
Dimon said the bank runs that led to the sudden failures of Silicon Valley Bank (SVB) and Signature Bank were far less dire than the 2008 financial crisis, but he said that if lenders failed, it would be a “failure.” He called for stronger financial regulations aimed at preventing “excessive panic.”
“The resolution and recovery regulations have not worked particularly well during the recent crisis. need,” he wrote.
Dimon, who heads the country’s largest bank, is a veteran of the housing crash that rocked Wall Street 15 years ago and the global financial crisis that followed. is read.
“Unknown risk”
On March 10, regulators shut down SVB, which served Silicon Valley tech and venture capital firms. withdrew $42 billion From the institution in one day. A shocking failure caused a runaway of small banks, leading to bank collapse. Signature Bank of New York Two days later, cautious depositors at other local banks also raced to withdraw their money.
“The unknown risk was that SVB’s more than 35,000 corporate clients and activities within them were managed by a small number of venture capital firms whose deposits moved in lockstep,” Dimon said. I’m here.
JPMorgan Chase and 10 other Wall Street firms deposited in hopes of staving off the crisis $30 billion for First Republic Bank of San Francisco to help it stay afloat.On the other hand, the Swiss regulator Acquisition of Credit Suisse by UBShad suffered economic losses for years before the crisis.
In a letter to JPMorgan shareholders, Dimon said the panic across the banking industry had subsided, but the impact would persist. “At the time of writing this letter, the current crisis is far from over.
“A crisis that undermines Americans’ trust in their banks hurts all banks,” he added.
Dimon, by contrast, cautioned against the heavy-handed response of regulators to bank failures. Alluding to the 2008 bank failure that leveled Lehman Brothers and nearly bankrupted other major Wall Street companies, Dimon said:
“The major investment banks, Fannie Mae and Freddie Mac, nearly all thrift institutions, off-balance sheet vehicles, AIG, and banks around the world all failed. We have less to do and fewer problems to solve.”
Dimon also explained how JP Morgan is investing in advanced artificial intelligence tools such as ChatGPT. Banking giants are using the technology to process global payments and are researching ways to use it for risk analysis, marketing, fraud analysis, and more.
To do so, JP Morgan has assembled a group of over 900 data scientists who specialize in AI and 600 engineers with expertise in machine learning.
“We envision new ways to empower and empower our workforce with AI through human-centric collaboration tools and workflows, leveraging tools such as large-scale language models, including ChatGPT,” says Dimon. said Mr.
The Associated Press contributed to this report.
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Jamie Dimon, CEO of JPMorgan Chase, said in its annual report: letter Addressing shareholders on Tuesday, he said the deposit crisis that has roiled the banking industry is “not over yet” and could affect the financial services sector “for years to come.” Dimon said the bank runs that led to the sudden failures of Silicon Valley Bank (SVB) and Signature Bank were far less dire than the 2008 financial crisis, but he said that if lenders failed, it would be a “failure.” He called for stronger financial regulations aimed at preventing “excessive panic.”“The resolution and recovery regulations have not worked particularly well during the recent crisis. need,” he wrote.
Dimon, who heads the country’s largest bank, is a veteran of the housing crash that rocked Wall Street 15 years ago and the global financial crisis that followed. is read. “Unknown risk”On March 10, regulators shut down SVB, which served Silicon Valley tech and venture capital firms. withdrew $42 billion From the institution in one day. A shocking failure caused a runaway of small banks, leading to bank collapse. Signature Bank of New York Two days later, cautious depositors at other local banks also raced to withdraw their money.
“The unknown risk was that SVB’s more than 35,000 corporate clients and activities within them were managed by a small number of venture capital firms whose deposits moved in lockstep,” Dimon said. I’m here.
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JPMorgan Chase and 10 other Wall Street firms deposited in hopes of staving off the crisis $30 billion for First Republic Bank of San Francisco to help it stay afloat.On the other hand, the Swiss regulator Acquisition of Credit Suisse by UBShad suffered economic losses for years before the crisis. In a letter to JPMorgan shareholders, Dimon said the panic across the banking industry had subsided, but the impact would persist. “At the time of writing this letter, the current crisis is far from over.”A crisis that undermines Americans’ trust in their banks hurts all banks,” he added.
Dimon, by contrast, cautioned against the heavy-handed response of regulators to bank failures. Alluding to the 2008 bank failure that leveled Lehman Brothers and nearly bankrupted other major Wall Street companies, Dimon said:“The major investment banks, Fannie Mae and Freddie Mac, nearly all thrift institutions, off-balance sheet vehicles, AIG, and banks around the world all failed. We have less to do and fewer problems to solve.”
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Dimon also explained how JP Morgan is investing in advanced artificial intelligence tools such as ChatGPT. Banking giants are using the technology to process global payments and are researching ways to use it for risk analysis, marketing, fraud analysis, and more. To do so, JP Morgan has assembled a group of over 900 data scientists who specialize in AI and 600 engineers with expertise in machine learning. “We envision new ways to empower and empower our workforce with AI through human-centric collaboration tools and workflows, leveraging tools such as large-scale language models, including ChatGPT,” says Dimon. said Mr.The Associated Press contributed to this report.
https://www.cbsnews.com/news/jamie-dimon-jpmorgan-chase-ceo-shareholder-letter-banking-crisis/ JPMorgan Chase CEO Jamie Dimon says banking crisis ‘not over yet’ in annual shareholder letter