Lates News

JP Morgan CEO Jamie Dimon stated that the $1.8 trillion private credit market is relatively small. However, he warned that once the credit cycle weakens, all leveraged loans' losses will exceed expectations because credit standards have been significantly weakened. Private credit also often lacks high transparency or strict valuation loans, which increases the possibility of investors selling off when they believe the environment will deteriorate. Dimon also harshly criticized the revisions proposed by US bank regulatory agencies last month, condemning certain aspects as "completely nonsensical." JP Morgan is one of the banks striving to downplay the Basel III and GSIB (Global Systemically Important Bank Surcharge Rule) drafts scheduled for 2023. However, Dimon stated on Monday that these proposals are still "full of holes," adding that JP Morgan's Global Systemically Important Bank Surcharge (additional capital required for such banks) will only decrease to 5.0%, which he believes is a punishment for its success and is "ridiculous" and "un-American."