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JPMorgan’s Jamie Dimon sees parallel to pre-financial crisis era as rivals do ‘dumb things’
Jamie Dimon warns that risky lending and high asset prices could trigger a credit downturn like 2008, citing ongoing private credit market stresses and AI disruption risks.
- Jamie Dimon, JPMorgan Chase CEO, warned on Feb 23 that current markets echo the pre-2008 loan rush, and he expects the credit cycle to sour again.
- Fierce competition and a buoyant market are prompting some firms to stretch lending to boost net interest income, Dimon said, while artificial intelligence-driven investor moves have depressed stocks in recent weeks.
- Pointing to internal performance metrics, Dimon noted that in 100 areas, JPMorgan expects to win in 75 and lose in 25, citing recent failures of Tricolor Holdings and First Brands as evidence of potential wider defaults.
- JPMorgan will not chase riskier loans to boost net interest income and will stick to its lending rules even if it costs business, while worries swirl over private credit markets and Dimon warned credit cycles can surprise.
- Given his two-decade CEO tenure, Jamie Dimon's warnings in an investor Q&A about AI disruption in the software sector carry significant weight.
40 Articles
40 Articles
Sydney Morning Herald
‘People doing dumb things’: Wall Street boss Jamie Dimon warns of AI frenzy
The JPMorgan Chase CEO thinks the impact of artificial intelligence on software companies might be the trigger for a wave of loan defaults, and sees parallels to the GFC.
JPMorgan CEO Dimon Warns Markets Resemble Era Before 2008 Recession
Markets worldwide are starting to resemble the era before the 2008 financial crisis and recession, warned JPMorgan Chase CEO Jamie Dimon on Monday an event hosted by his company. “Unfortunately, we did see this in ’05, ’06, ’07, almost the same thing,” Dimon said at JPMorgan’s annual investor meeting in reference to the years before the crisis. “The rising tide lifting all boats, everyone was making a lot of money, people leveraging to the hilt.…
"I see some people doing stupid things just to generate a liquid financial margin," says Jamie Dimon
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