Many believe that the banking industry is on its way to exiting the recent crisis caused by the failure of several banks, including Silicon Valley Bank and Credit Suisse. But JPMorgan Chase & Co CEO Jamie Dimon isn’t quick to agree with this assessment.
In a letter shared with the shareholders on Tuesday, Dimon stated that the banking crisis is “not over yet.” He also added that the consequences of the turmoil in the banking world would be felt for several more years.
“The current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come,” Dimon wrote in the letter.
According to Dimon, the odds of a recession have increased, although he still believes that a financial crisis like the one that happened in 2008 will be avoided.
“This current banking crisis involves far fewer financial players and fewer issues that need to be resolved,” he explained.
The banking crisis started unraveling when cryptocurrency-focused Silvergate Bank folded in early March, followed by the collapse of Silicon Valley Bank and Silvergate Bank. The latter two marked the second and third biggest bank failures in the history of the United States. The only bigger collapse was when Washington Mutual failed in 2008.