JPMorgan Chief Jamie Dimon Predicts a “bad recession” just like the 2008 crisis

On Monday JPMorgan Chase’s CEO, Jamie Dimon said that he is expecting a “bad recession” and this one due to the coronavirus would be worse than the 2008 global crisis.

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 shareholders’ letter. “Our bank cannot be immune to the effects of this kind of stress.”

JPMorgan also recently warned investors against buying stocks right now and Dimon also had heart surgery recently but he explained the actions that the bank is taking to tackle the impacts of the coronavirus and he also said that the banks will assist the government in this fight against the coronavirus.

“As we get closer to the extremely adverse scenario, current regulatory constraints will limit additional actions we can take to help clients,” Dimon said, “in spite of the extraordinary amount of capital and liquidity we could deploy.”

Dimon added that while JPMorgan “will participate in government programs to address the severe economic challenges, we will not request any regulatory relief for ourselves.”

Dimon suggested that there is a recession in economies all over the world and the US will take necessary actions to revive the economy.

“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. There will be a time and place for that — but not now.”

Dimon supported the fact that the US will get back on its feet and will continue to be the greatest country in the world. “We have the resources to emerge from this crisis as a stronger country,” Dimon said. “America is still the most prosperous nation the world has ever seen.”