JPMorgan CEO Jamie Dimon on Friday warned this may be the “most dangerous time the world has seen in decades” as Wall Street’s top banker made his first comments on the escalating war in the Middle East.
“The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships,” Dimon said in a statement accompanying JPMorgan’s better-than-expected third-quarter earnings.
The head of the world’s largest bank added there would be “ripple effects that extend far beyond the region.”
In addition to geopolitical concerns, Dimon said the country’s mounting $33.5 trillion debt — “the largest peacetime fiscal deficit ever” — is cause for concern.
Dimon struck a cautionary tone despite the bank’s strong profits of $4.33 per share — a 35% increase year over year. He said the increased revenue from credit cards and net interest income will likely not last over time.
“While we hope for the best, we prepare the firm for a broad range of outcomes so we can consistently deliver for clients no matter the environment,” Dimon said.
Shares of JPMorgan were trading more than 3% higher at roughly $151 per share on the news. Other major banks will report earnings during the next few days.
Dimon said he was saddened by the bloodshed in the Middle East but refused to pile on to criticism levied at his alma mater, Harvard, for how it has responded to students taking a pro-Palestine position.
In recent days, other notable financiers like Bill Ackman and Marc Rowan have slammed leaders at Harvard and the University of Pennsylvania, respectively, for tolerating antisemitism on their campuses.
On the positive side, Dimon said that the regional bank crisis — which allowed JPMorgan to scoop up First Republican — was “over for now.”
Over the last few years, Dimon has struck a cautious tone when it comes to the economy, making headlines last year by warning a potential hurricane could slam the markets.
“That hurricane is right out there, down the road, coming our way,” he said last summer. “We just don’t know if it’s a minor one or Superstorm Sandy or Andrew or something like that. You better brace yourself.”
This story originally appeared on NYPost
