The crisis that started in the banking sector last month due to the collapse of two regional banks in the United States and then the emergency sale of Credit Suisse to UBS seems to be over.
That said, in an interview with the news channel CNN, Jamie Dimon, CEO of the major American bank JPMorgan Chase.
For example, California’s Silicon Valley Bank collapsed after a bank run by customers. The US government subsequently provided guarantees for the bank balances. But according to Dimon, only a handful of lenders have similar problems, and those problems will also be solved. “So if more banks fail, they will probably be the last. I think we are at the end of this particular crisis.”
The CEO of the largest bank in the US believes that the recent banking turmoil has increased the chance that the US economy will fall into recession because people are more cautious about taking out loans. But a recession is not a certainty, says Dimon. He further stated that the government should not overreact to the banking crisis by imposing many more rules on the banking sector.
Next Friday, JPMorgan Chase and other major US banks will release their quarterly results. Dimon expects the banking sector to show good results over the past three months.