STORY CONTINUES BELOW THESE SALTWIRE VIDEOS
NEW YORK (Reuters) -JPMorgan Chase & CO CEO Jamie Dimon mentioned on Thursday the financial institution is convening weekly conferences to debate the implications of a possible U.S. default, in keeping with an interview on Bloomberg TV.
That financial institution’s so-called “conflict room” will in all probability begin each day conferences on Could 21, then ramp as much as 3 times a day if the standoff over the debt restrict drags on, he mentioned.
“We have to be very cautious about getting shut” to a default, which might trigger a monetary panic, he added.
“It’s totally unlucky, it is time-consuming, hopefully it will not occur, however it impacts contracts, collateral, clearing homes, purchasers.”
Turning to the banking disaster, Dimon mentioned regional banks are “fairly sturdy” after reporting good earnings. Nonetheless, the business and regulators ought to “simply be ready for issues.”
He expects extra regulation on the banks, however pressured the necessity to proceed fastidiously. Dimon hopes regulators, together with the U.S. Securities and Alternate Fee (SEC), will look into quick promoting on financial institution shares and potential collusion through social media posts.
Regardless of these considerations, Dimon blamed the current banking disaster on CEOs and boards of failed lenders.
JPMorgan has hedged First Republic Financial institution’s rate of interest publicity after shopping for the corporate when it collapsed into receivership earlier this month, he added. Whereas he expects blowback from the acquisition, Dimon mentioned the U.S. wants large banks to perform advanced duties akin to banking multinational firms.
(Reporting by Tatiana Bautzer, enhancing by Lananh Nguyen and Chizu Nomiyama)