JPMorgan's (JPM) Dimon Expects Greece to Default, Doesn't See Large Fallout
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JPMorgan's (NYSE: JPM) CEO Jamie "Balls of Steel" Dimon thinks Greece is yesterday's news.
According to an interview on CNBC earlier, the impact of a Greek default on U.S. banks would be about "zero." Though he conceded that there might be some surprises, he's not terribly worried about such developments.
What's really on Dimon's mind? "The real issues are Spain and Italy," Dimon said in the interview.
Right now, Dimon believes the "cascade problem" is off the table, thanks to recent moves by the European Central Bank (ECB). He refers to a large bank in need of bailout leading to customers removing deposits, therefore amplifying the problem.
Dimon thinks the euro is a "wonderful thing," and that it is simply hitting a "bump in the road."
On banks "being too big to fail," Dimon thinks that should come to an end. He said that should Lehman have solely gone under in 2008, or AIG (NYSE: AIG) went bankrupt in 2004, those would have been isolated incidents that the economy would have been easily been able to absorb. Because it was a rapid-fire of failure in 2008 - 09, the problem became too much.
JPMorgan shares are down about 0.7 percent Thursday.
According to an interview on CNBC earlier, the impact of a Greek default on U.S. banks would be about "zero." Though he conceded that there might be some surprises, he's not terribly worried about such developments.
What's really on Dimon's mind? "The real issues are Spain and Italy," Dimon said in the interview.
Right now, Dimon believes the "cascade problem" is off the table, thanks to recent moves by the European Central Bank (ECB). He refers to a large bank in need of bailout leading to customers removing deposits, therefore amplifying the problem.
Dimon thinks the euro is a "wonderful thing," and that it is simply hitting a "bump in the road."
On banks "being too big to fail," Dimon thinks that should come to an end. He said that should Lehman have solely gone under in 2008, or AIG (NYSE: AIG) went bankrupt in 2004, those would have been isolated incidents that the economy would have been easily been able to absorb. Because it was a rapid-fire of failure in 2008 - 09, the problem became too much.
JPMorgan shares are down about 0.7 percent Thursday.
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