In his annual letter to the shareholders, JPMorgan Chase CEO Jamie Dimon, gave handful detail of how bad can US economy be after the outbreak of corona virus pandemic
In his letter, he expressed that GDP could plunge at an annual rate of 35% in the most adverse scenario and a downturn would last through the rest of the year. This will eventually lead to an unemployment rate of 14%.
Being a bit hopeful, Dimon added that this scenario is quite severe and, we hope, unlikely.” And even if the worst case situation bears out, JPMorgan Chase — the largest US bank by assets — still plans to lend an additional $150 billion to its customers.
Shares of JPMorgan Chase rose nearly 5% in early trading Monday. The bank is likely to talk more about how it’s faring in its next earnings report, scheduled for Tuesday, April 14.
In his letter, Dimon has also cornered the political leaders of America for their lack of preperation to handle the outbreak.
“The current pandemic is only one example of the bad planning and management that have hurt our country,” Dimon said in the letter, adding that “there should have been a pandemic playbook.”
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