Banking Crisis "Is Not Over Yet"

4.4.23 - Banking Crisis "Is Not Over Yet"

Gold last traded at $2,020 an ounce. Silver at $25.00 an ounce.

Current Banking Crisis "Is Not Over Yet" - Jamie Dimon Warns Of "Repercussions For Years To Come" -ZeroHedge

Having correctly forecasted the "unprecedented" risks from the combination of inflation, war, and COVID in last year's letter, JPMorgan CEO Jamie Dimon offers only a very dim silver lining for the way forward (current consumer strength and AI opportunities) while warning that the banking crisis is "not over yet", fearing an "overreaction" by regulators,

"As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come. But importantly, recent events are nothing like what occurred during the 2008 global financial crisis."

Dimon is quick to point the finger of blame at the regulators...

"Ironically, banks were incented to own very safe government securities because they were considered highly liquid by regulators and carried very low capital requirements," Dimon said.

"Even worse," he added, the Federal Reserve didn't stress-test banks on what would happen as rates jumped.

Though he admits management are not without blame....