Saudi Press

Saudi Arabia and the world
Friday, Sep 12, 2025

Latest Banking Crisis Will Be "Felt For Years": JPMorgan Chase CEO

Latest Banking Crisis Will Be "Felt For Years": JPMorgan Chase CEO

Much as in 2008, Jamie Dimon has played a key role in trying to support the system, this time by shoring up First Republic Bank following failures of Silicon Valley Bank and Signature Bank that were followed by the demise of Credit Suisse.
While the current banking crisis isn't like 2008, it "is not yet over" and will be felt for years to come, JPMorgan Chase Chief Executive Jamie Dimon said Tuesday.

Dimon, who has in coordination with Washington officials shaped the financial industry's response to the crisis, said recent bank failures "have significantly changed the market's expectations ... the stock market is down and the market's odds of a recession have increased," he wrote in his annual shareholder letter.

"And while this is nothing like 2008, it is not clear when this current crisis will end."

Much as in 2008, Dimon has played a key role in trying to support the system, this time by shoring up First Republic Bank following failures of Silicon Valley Bank and Signature Bank that were followed by the demise of Credit Suisse.

Although First Republic has stabilized somewhat since Dimon helped lead a joint $30 billion lifeline to the bank through a collaboration of 12 banks, the industry is not completely out of the woods yet, said Dimon, who highlighted the possibility that the Fed will need to keep interest rates high for longer than currently expected.

Current risks posing "storm clouds" include "higher inflation for longer, the market effects of (quantitative tightening) and growing political risks," Dimon said. "Of course, I cannot be sure this will happen, but I place higher odds on it than the 'market.'"

Dimon warned against backward-looking federal regulation, calling the current regime of Fed stress testing a "mind-numbingly complex task about crossing t's and dotting i's."

The Fed did not test for higher interest rates, a catalyst in recent failures, Dimon said.

"It should be noted that regulations, the supervisory regime and the resolution regime currently in place did not stop SVB and Signature Bank from failing -- and from causing systemwide issues," Dimon said.

"We should carefully study why this particular situation happened but not overreact."
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
×