JP Morgan's Dimon: 'I Do Not Expect a Depression'
JP Morgan Chase chief executive Jamie Dimon, known by many now as "the nation's banker," just wrapped up an interview on CNBC during which he said: "I do not expect a depression."
Dimon said he believes the U.S. will be the first major economy to emerge from the global recession but that his company is "prepared for a tough '09."
"It's all going to be unemployment-driven," said Dimon, while talking to CNBC's Erin Burnett. But "if we're lucky, we'll get two more quarters of this and then recovery."
You can see the video here.
Dimon -- with government help -- engineered JP Morgan's $10-per-share takeover of investment bank Bear Stearns earlier this year.
He has also been at the center of ongoing talks with Treasury Secretary Hank Paulson, Fed Chairman Ben Bernanke and New York Fed chief Tim Geithner -- picked to succeed Paulson at Treasury -- during the ongoing financial crisis.
Some other highlights of the interview:
-- Dimon said that he believes national housing prices could drop another 20 percent.
-- About 30 percent of JP Morgan's reworked mortgages head back into default, about half of the national average of 60 percent. "A lot of people lied on their mortgages," Dimon said. "A lot of people lied on their loans."
-- A tax cut "should be in the tool kit" for any economic stimulus plan proposed by President-elect Barack Obama, but "only for lower-paid people."
-- On ongoing rumors that JP Morgan will merge with Goldman Sachs or another big bank: "I do not believe it makes any sense for two major investment banks to merge. It's too hard. You have to lay off too many people, you lose clients, you lose your best people."
December 11, 2008; 2:49 PM ET
Categories: The Ticker | Tags: Bear Stearns, Ben Bernanke, Geithner, JP Morgan, Jamie Dimon, Paulson
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