JPMorgan/ Dimon: The banking crisis is coming to an end
JPMorgan CEO Jamie Dimon stated that only a handful of banks have experienced the problems experienced by the SVB, while the balance sheets to be announced by the industry next week will be largely good.
In an interview with CNN, Dimon was asked whether more banks would go bankrupt, “I don’t know. But if we see more bankruptcies, these will probably be the last ones.”
On the other hand, banks’ use of the Fed’s emergency liquidity channel remains high, even though it has declined. U.S. banks used the Fed’s emergency liquidity channels for $148.7 billion in the week ending April 5th. In the previous week, this size was at the level of 152.6 billion dollars.
“In the big picture, we can say that banking stress has been brought under control and that there has been a very gradual normalization,” JPMorgan Chief US Economist Michael Feroli said in a note.
He said the banking crisis is not over yet.
Dimon wrote in a letter to shareholders at the beginning of April that the banking crisis was not over yet.
Stating that there was a deposit inflow to big banks with the crisis, but there was a loss of confidence in all bank customers, Dimon said, “The crisis is not over yet and its effects will continue for years. But most importantly, the situation is not as bad as the global crisis in 2008.”