Alarm bells: JPMorgan CEO Jamie Dimon says a 'bad recession' is coming
JPMorgan Chase & Co's top boss, Jamie Dimon, on Monday said he sees a "bad recession" in 2020, and that the largest US bank could suspend its dividend if the coronavirus crisis deepens.
"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," Dimon said.JPMorgan could look at suspending dividends if gross domestic product were to fall by as much as 35 per cent in the second quarter and the unemployment rate were to rise further to 14 per cent in the fourth quarter of the year, the chief executive officer wrote.
Dimon highlighted some challenges seen at the bank's call centres, where a handful of staff have fallen ill, customer call volumes are at record highs and local restrictions have effectively shuttered some offices. "In both our central case scenario for 2020 results and in our extremely adverse scenario, we are lending – currently or plan to do so – an additional $US150 billion for our clients' needs," Dimon said.
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