[New York, 4th Archyde.com]-Jamie Dimon, CEO of US financial giant JP Morgan, said yesterday that the bank might suffer a loss of regarding $ 1 billion in its exposure to Russia. Indicated.
This is the first time that the bank has provided a concrete loss forecast for Russia’s invasion of Ukraine. It was revealed in an annual letter to shareholders.
He is not concerned regarding his exposure to Russia, but points out that the Ukrainian war will slow the global economy and affect geopolitics for decades. He said he was concerned regarding secondary implications for businesses and countries.
“The United States should be prepared for the risk of a prolonged Ukrainian war with unpredictable consequences. We need to be prepared for the worst and expect the best.”
He also argued that it was necessary to increase the presense of the US military in Europe. He reiterated that plans should be developed to ensure the energy security of the United States and its allies.
Regarding Sino-US relations, he argued that the US supply chain should be renewed and the scope should be limited to the US or “perfectly friendly” suppliers. He also called for a re-enrollment in the Trans-Pacific Partnership (TPP).
Regarding the macroeconomic situation, he pointed out that the number of rate hikes by the Federal Reserve Board (FRB) may “significantly exceed market expectations.”
He also said that the bank’s expenses would increase due to investment in technology and the cost of acquisitions. The acquisition is expected to increase this year’s “additional investment costs” by regarding $ 700 million. Investing in technology is expected to increase costs by $ 2 billion this year.
The bank has acquired nearly $ 5 billion over the past year and a half. It is also necessary to meet the federal government’s capital increase standards, and it is said that it will reduce share buybacks over the next year.