Jamie Dimon says financial crisis is coming, blames regulation

[marmar]

LONDON (MarketWatch) — You ain’t seen nothing yet, when it comes to market wreckage from a financial crisis, according to J.P. Morgan boss Jamie Dimon.

In his annual letter to shareholders, the bank’s chief executive warned “there will be another crisis” — and the market reaction could be even more volatile, because regulations are now tougher.

He argued the crackdown on the financial sector, added to more-stringent requirements for capital and liquidity, will hamper banks’ capacity to act as a buffer against shocks in financial markets. Banks could become reluctant to extend credit, for example, and less likely to take on stock issuance through rights offering, which would essentially create a shortage of securities.

Such factors “make it more likely that a crisis will cause more volatile market movements, with a rapid decline in valuations even in what are very liquid markets,” Dimon said in the letter. “Recent activity in the Treasury markets and the currency markets is a warning shot across the bow.” ....................(more)

The complete piece is at: http://www.marketwatch.com/story/jp-morgans-dimon-warns-next-crisis-will-be-even-more-volatile-2015-04-09?dist=lcountdown

[Ilsa]

1. "...so if I were you, I'd let the banks do

whatever they want, or else!"

[arcane1]

10. Or the banks "could" become reluctant!!

[DetlefK]

2. I don't get it. He knows there will be a crisis, but he has no idea what kind of crisis?

And the only way to survive that mystery-crisis is to loosen the liquidity-requirements for banks?


Ah, now I get: He's putting out a list of bribes we are allowed to offer to the banks to make them do what they will do anyways.

[Ilsa]

13. Bribes and maybe half-assed threats that

they'll let it all happen if they don't get what they want.

[trotsky]

3. Clearly the only reasonable solution...

is to give him and his fellow big bank bosses exorbitant bonuses so they will have the incentive to fix things.

[edhopper]

4. In other News

ISIS says the problems in the Middle east are due to restrictions on Militant Islam.

[Orsino]

5. Opposite Day again.

Still.

[corkhead]

6. I don't doubt that a crisis is inevitable but it sounds like he is laying groundwork for the excuse

[marmar]

7. agreed.

He knows he and his fellow banksters have already set the next crisis in motion, and he's offering up a preemptive excuse

[appalachiablue]

8. Correct. The Inmates are calling for a RIOT because there's too many Guards..and the food is

lousy. Just so you know...when it happens.

[mmonk]

14. Hammer meets nail. You've got it.

[arcane1]

9. Sounds like extortion to me n/t

[Aerows]

11. Every 7 years

we have one.

Jamie Dimon is one of the trio that engineers them.

You can rob the people with a rifle, and they send you to prison. You can rob the people with the stroke of a pen, and be lauded.

[pa28]

12. We have to return to the self-regulated, uncollateralized circus that allowed the financial crisis.

Or we'll have another financial crisis?

He's trying to give political cover for politicians willing to gut the rest of Dodd-Frank and scare the rest with a threat.

[L0oniX]

15. Hey Jamie ...you m* fucka, have you bought the national guard yet?

You might need them ....in addition to all the pigs that shoot people in the back to do your bidding.

[betterdemsonly]

16. Shock Doctrine 101

They know it is coming and they are prepared to use it to get more bank deregulation. Please Obama don't give them anymore unconditional bailouts??

[MisterP]

17. "crackdown"? "regulations are now tougher"??!!

[Enthusiast]

18. What a ridiculous claim! Deregulation was directly responsible for the last crisis.

And deregulation is fomenting coming crisis. Jamie Dimon should be in prison.