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JPMorgan CEO Jamie Dimon: Double dip recession would cause ‘pain and suffering’

JPMorgan CEO Jamie Dimon: Double dip recession would cause ‘pain and suffering’




“I have great faith in this country and I’m sure we’ll have a proper election,” Dimon told reporters during a conference call in response to a question about doubts over election results.

“A decent stimulus package would be helpful,” Dimon said, because it would lower the chances of a double-dip recession and minimize the damage done to small businesses and unemployed Americans.

“If you have a double-dip, there will be considerable pain and suffering,” Dimon said.

‘Significant amount of uncertainty’

Despite those economic concerns, JPMorgan (JPM) signaled confidence in the recovery by slightly upgrading its economic forecasts and opting not to ramp up its cushion for loan-loss reserves. Analysts had expected the nation’s largest bank to set aside billions more to cover defaults and bankruptcies.

“The consumer is in reasonably good shape for whatever we may face next,” JPMorgan chief financial officer Jennifer Piepszak said during the call. “Having said that, there is a significant amount of uncertainty about what we may face next.”

The International Monetary Fund on Tuesday downgraded its global growth forecast for next year and warned of a “long, uneven” recovery that will cause a rare increase in extreme poverty.

Returning to the office — and building a new one

JPMorgan said that in New York City and London, about 20% of its employees have returned to offices, a level the bank expects to maintain for the foreseeable future. Senior managers at JPMorgan’s sales and trading unit in those cities were asked to return the offices late last month.

“Importantly, if we see any worrying trends anywhere, and we do continue to monitor, we won’t hesitate to reverse course,” Piepszak said.

In some other parts of the country, JPMorgan said that up to 50% of employees on de-densified floors have returned to the office.

A shocking number of women dropped out of the workforce last month
The pandemic has not derailed JPMorgan’s plans to build a new Manhattan headquarters that will accommodate around 14,000 people. That plan, announced two years before the health crisis erupted, calls for combining workers in various New York offices into a taller building.

“I do expect New York headcount to come down over time, but we’re still building our headquarters,” Dimon said. “We’re building our headquarters for fifty years. It’s not a short-term decision.”

But Dimon does anticipate New York real estate will have a “bit of a tough time” because some companies will allow employees to work from home permanently or partially, reducing the amount of office space needed.





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