The largest US bank by assets, JPMorgan Chase & Co. CEO Jamie Dimon, who has led the firm since 2006, spoke in his latest statement about the state of the US economy and the challenges facing the banking sector.
Dimon: "Everybody Get Ready for Higher Interest Rates"
Dimon said regional banks were "doing well" on first-quarter earnings, but warned that "everyone needs to be prepared for higher interest rates from now on".
Dimon also touched upon the growing deposit problem in banking. He said the question is more about "what is operable" rather than whether the deposits are insured or uninsured.
Operable deposits are deposits that can be quickly withdrawn by customers, such as money market funds and corporate accounts.
One of the most influential and respected CEOs in the world of finance, Dimon openly expresses his views on a variety of issues, including politics, regulation, climate change and social issues.
The banking crisis in the US is a series of events that began in March 2023 with a surge in deposits following the collapse of Silicon Valley Bank, a major lender to tech start-ups and venture capital firms. The bank's bankruptcy triggered a panic among investors and clients of other mid-sized banks such as First Republic Bank, Signature Bank and Western Alliance, which have similar exposure to the tech sector and real estate market.
*Not investment advice.