WASHINGTON – The CEO of American JP Morgan Bank Jamie Dimon is of the opinion that the turmoil in the U.S. financial sector has not yet ended following the bankruptcy of Silicon Valley Bank, saying that its adverse effect will remain in place for years.
The banker in his annual letter to stockholders of the bank emphasized that turn of events has “significantly changed market expectations tremendously, so that bonds and securities’ prices have improved dramatically.
Accordingly, the stock market has fallen, and the possibility of the market downturn has increased significantly, he added.
Dimon further warned that the current crisis has not yet over, adding that even if this financial crisis is settled, its outcome will remain for the coming years.
In early March 2023, mass influx of people to withdraw their capital from their deposit account caused Silicon Valley Bank (SVB) and Signaturer Bank to face bankruptcy for a few days.
Given the above issue, the main lender i.e. First Republic Bank received a $30 billion worth of deposit from large bank including JP Morgan.
So, this financial crisis spread to Europe as Switzerland-based “Credit Suisse” Bank faced several problems.