The crisis that began in the banking sector last month due to the collapse of two regional banks in the US and then the emergency sale of Credit Suisse to UBS appears to be over. This was stated by Jamie Dimon, CEO of the large American bank JPMorgan Chase, in an interview with the CNN news channel.
California’s Silicon Valley bank, for example, collapsed after a customer-run bank. The US government subsequently provided guarantees for the bank balances. But according to Dimon, only a few lenders have similar issues and those issues will be fixed as well. So, if any other banks fail, it will probably be the last. I think we are at the end of this very crisis.”
The CEO of the largest bank in the United States believes that the recent banking turmoil has increased the chance that the US economy will fall into recession, because people are more cautious about borrowing. Dimon says a recession is not certain. He further stated that the government should not overreact to the banking crisis by imposing more rules on the banking sector.
Next Friday, JPMorgan Chase and other major US banks will announce their quarterly results. Dimon expects the banking sector to show good results over the past three months.
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