Dimon: Abatement testament be worse than meltdown - Nov. 12, 2008

CEO Jamie Dimon said Wednesday at a banking conference. We anticipate (the recession) could be deep; we don't recognize how deep," Dimon said. We expect the economy could be worse than the central markets crisis." He said the government's actions to pump cash into the financial action bear been "powerful medicine" to maintenance allot the dislocated financial markets. Nevertheless all the more an eventual normalization in the markets "may not speck us from having a buried recession," Dimon said.

Manifold folks yet can't satisfy financing, he said. And the troubles are so general that companies all over the environment are stuck with dangerous investments on their hands and running for cover. Referring to billionaire investor Warren Buffett's maxim approximately finding gone who's been swimming bare when the tide goes out, Dimon said: "There are community swimming naked everywhere."

Financial institutions on all sides of the universe hold been slammed by both deteriorating consumer credit and turbulent financial markets. The bank's family fairness loan losses could rise as flying as $850 million over the coming assorted quarters, Dimon said. That was up from carry on month's forecast of losses of as yet as $800 million in the future quarters.

Expectations for losses from other loans -- credit cards, subprime mortgages and prime mortgages -- were the alike as on Oct. 15, when JPMorgan reported an 84 percent blop in third-quarter earnings. The bank anticipates credit card loss rates of about 5 percent in the fourth quarter, 6 percent at the blastoff of 2009, and 7 percent by the mark of 2009.

It again expects subprime morgage quarterly losses as aerial as $425 million in early 2009, and prime mortgage quarterly losses as grand as $300 million. We keep tightened consumer lending considerably," Dimon said at Merrill Lynch's banking and financial services convention in Advanced York. He added, though, "We're even lending. We're much in business." A cutting edge period rises Democrats won a stronger majority in Congress. That process latest activity for once-tabled bills.

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