London Daily

Focus on the big picture.
Tuesday, Oct 06, 2026

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

0:00
0:00
Close
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
EY Warns UK Fiscal Headroom Has Halved to £11 Billion Ahead of Autumn Budget
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
Toulouse Aerospace Sector Launches €80 Million Modernization Fund
Javier Milei Courts French Investment in LNG and Lithium
Mistral AI Launches Sovereign Model for European Public Services
French Competition Authority Fines Retailers €40 Million Over Misleading Promotions
France Records Exceptional Electricity Exports as Nuclear Output Recovers
Dassault Aviation Expands Rafale Assembly Capacity at Mérignac
Sanofi Invests €1 Billion in New Biologics Production Hub Near Lyon
France Protests Germany’s Extension of Border Controls Into 2027
French Public-Sector and Transport Unions Threaten National Strike
France Deploys Riot Police After Violence in Lyon Suburbs
French Anti-Terrorism Prosecutors Investigate Radicalized Flydubai Co-Pilot
France’s Defense Budget Surpasses NATO’s 2% of GDP Target
French Government Faces No-Confidence Threat Over Budget
France and G7 Release 100 Million Barrels From Strategic Oil Reserves
France Convenes Emergency Defense Council Over Threats to Commercial Shipping
×