By Senad Karaahmetovic
Jamie Dimon, CEO of JPMorgan (NYSE:JPM), believes the banking crisis is “not yet over” and feels that the consequences will be felt “for years to come.”
On a more positive note, Dimon says the 2023 banking crisis is “nothing like what occurred during the 2008 global financial crisis.”
“This current banking crisis involves far fewer financial players and fewer issues that need to be resolved,” Dimon wrote in JPM’s 2022 annual report.
The most influential banker in the world added that some lessons must be learned and called for “some changes to the regulatory system.” Still, he warns policymakers against making “knee-jerk, whack-a-mole or politically motivated responses that often result in achieving the opposite of what people intended.”
“Now is the time to deeply think through and coordinate complex regulations to accomplish the goals we want, eliminating costly inefficiencies and contradictory policies.”
More specifically, Dimon calls for the strengthening of regional, midsized, and community banks, which are “essential to the American economic system.”
JPMorgan’s CEO also warned about “storm clouds ahead,” a result of the “not normal” 2022 year. More precisely, Dimon highlights “unprecedented fiscal spending, quantitative tightening, and geopolitical tensions” as key troublemakers.
“While the current crisis has exposed some weaknesses in the system, it should not be considered, as I pointed out, anything like what we experienced in 2008. Nonetheless, we do have other unique and complicated issues in front of us,” he concluded.