US banking crisis to have 'repercussions' for years, JPMorgan Chase chief says

By Ovunc Kutlu

ISTANBUL (AA) - The US banking crisis is not over and there will be "repercussions" for years to come, JPMorgan Chase CEO Jamie Dimon wrote in a letter to shareholders that was released Tuesday.

Noting that recent events are "nothing like what occurred" during the global financial crisis in 2008 caused by consumer mortgages, Dimon said the current crisis involves fewer financial players and fewer issues that need to be resolved.

"Any crisis that damages Americans’ trust in their banks damages all banks – a fact that was known even before this crisis," he said. "While this crisis will pass, lessons will be learned, which will result in some changes to the regulatory system. However, it is extremely important that we avoid knee-jerk, whack-a-mole or politically motivated responses that often result in achieving the opposite of what people intended.”

Dimon called for coordinating complex regulations, eliminating costly inefficiencies and contradictory policies.

He said regional, mid-sized and community banks, which are essential to the American economic system, should be strengthened, while large and complex banks should continue to play a critical role in the US and global financial system.

"We should want a system in which a bank failure does not cause undue panic and financial harm,” he said. “We want proper transparency and strong regulations.”