Economists and industry experts engage in battles of opinion about banking crisis. Among the various comments was one from the managing director of JPMorganJamie Dimon, who immediately put himself on the other side of the fence regarding the statements of those who saw parallels in the current crisis with the 2008 one.
According to Dimon, recent events have nothing to do with the crisis of 2008, but such a crisis It will have long-term repercussions. According to the director of one of the four largest US banks, the crisis in the banking sector is not over yet, and in his annual letter to shareholders, he explained Administrative and supervisory issues that allowed her to express herself with such effect.
Dimon’s predictions about the banking crisis are not positive and are already warning of the coming years. In particular, the CEO of JpMorgan is cutting it out of the regulatory regime that allowed the realization of risks that were obvious to all.
The Banking Crisis: Long-Term Implications According to Dimon
The closing of Silicon Valley Bank and Signature Bank has caused, if not a shock to the financial sector, then certainly severe stress. second Jamie DimonCEO of a major US bank (JP Morgan) the event shook the foundations of the system and for this he criticized and demanded at the same time changes to the regulatory process. Just think of the amount of market capital that 25 of America’s largest banks lost in just the last month 332 billion dollars.
In his annual letter to shareholders, in which he also wanted to reassure JPMorgan’s leadership succession, he focused precisely on the failures of the two banks. He wrote that the crisis appears to have subsided, but that the consequences will be evident in the long run. Damon then commented that there are no banks too big to fail Who really benefited from the situation – due to the influx from smaller banks – and that JpMorgan itself stepped in to transfer $30 billion to the First Republic to prevent it from turning into another country Silicon Valley Bank Retreat.
Strategies and rules for facing crises: forward-looking proposals
JpMorgan’s work has succeeded in capturingDomino effect. “By strengthening small enterprises, the entire financial system has been supportedHe wrote in the annual address and added shortly thereafter:
Any crisis that undermines Americans’ confidence in their banks hurts all banks. And the idea that this crash was good for the big credit names is preposterous.
In this regard, the CEO of JpMorgan spared no criticism. According to Damon, in fact, most of the dangers were quite obvious, literally under everyone’s eyes, but what happened looks like an unknown threat.
to Jamie Dimon The solution, given the abundance of management and oversight risks, is clear: We need farsighted regulation, less academic and more collaborative.
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