"JPMorgan CEO Jamie Dimon has issued a warning about hidden financial risks as signs of deeper cracks begin to emerge in the credit markets. Dimon cited recent bankruptcies like Tricolor and First Brands as potential signals of broader instability, likening the situation to seeing "one cockroach" and knowing there are more. Among Dimon's concerns are over-leveraged subprime borrowers, particularly in auto loans and credit cards, where asset values no longer match outstanding debt."
"And Jamie Dimon, you know, he's been around, he, he, he's, he's seen this, this play before, you know, he saw it, you know, in, in no uncertain circumstances in 2007 and '08, he saw it in 2000, and God knows he saw it when long-term Capital blew up because that was a very dicey situation that could have gone either way. And, you know, his comment, which I think is good as that is that, "If you see one cockroach, there's usually more.""
JPMorgan CEO Jamie Dimon warned of hidden financial risks as warning signs appear in the credit markets. He pointed to recent bankruptcies such as Tricolor and First Brands as potential signals of broader instability. Over-leveraged subprime borrowers in auto loans and credit cards are a primary concern as asset values increasingly fail to cover outstanding debt. Historical parallels to 2007–2008 and earlier market crises were noted, including Long-Term Capital and Bear Stearns, illustrating how early failures can presage larger collapses. The metaphor that seeing one cockroach usually indicates more underscores the risk of unseen contagion.
Read at 24/7 Wall St.
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