JP Morgan CEO Jamie Dimon expresses the view that the coronavirus pandemic will lead to a major economic downturn and stress mirroring the meltdown that nearly brought down the U.S. financial system in 2008.
Dimon told shareholders 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.
"Our bank cannot be immune to the effects of this kind of stress."
Dimon's letter was handed down less than a week after Dimon told staff he’d returned to work after undergoing emergency heart surgery. It was his first public commentary about the coronavirus since the bank’s investor day on Feb. 25. At the time, the outbreak still seemed a distant threat, with fewer than 60 cases in the U.S. and none in New York.
Dimon said JPMorgan’s earnings will be "down meaningfully" this year, though the bank is "unlikely" to cut its dividend. Such a move would only result from "extreme prudence," he said. He also said JPMorgan will give more details on the impact on the bank when it reports first-quarter earnings later this month.
