(MENAFN) JPMorgan Chase CEO Jamie Dimon has warned that the US banking crisis is not yet over and that there will be “repercussions” for years to come. In a letter to shareholders released on Tuesday, Dimon acknowledged that recent events are “nothing like what occurred” during the global financial crisis in 2008 caused by consumer mortgages. However, he added that the current crisis involves fewer financial players and fewer issues that need to be resolved.
Dimon emphasized that any crisis that damages Americans’ trust in their banks damages all banks. He called for avoiding knee-jerk, whack-a-mole, or politically motivated responses that often achieve the opposite of what people intend. While the crisis will eventually pass, Dimon stated that lessons will be learned that will result in some changes to the regulatory system.
Dimon called for coordinating complex regulations, eliminating costly inefficiencies, and contradictory policies. He emphasized that regional, mid-sized, and community banks, which are essential to the American economic system, should be strengthened. At the same time, he believes that large and complex banks should continue to play a critical role in the US and global financial system.
Dimon further noted that a system should be established in which a bank failure does not cause undue panic and financial harm. He stressed the need for proper transparency and strong regulations to ensure that such a system is in place.
In conclusion, Dimon warned that the US banking crisis is not yet over, and there will be long-term repercussions for the banking industry. He called for coordination, cooperation, and a commitment to transparency and strong regulations to ensure that the banking system is robust, stable, and trustworthy.
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