Data for the first three quarters of 2025 have shown that smaller German firms have borne the brunt of almost three years of economic downturn in Europe's biggest economy over the past three years. On December 12, the chief analyst at the Association of German Chambers of Industry and Commerce (DIHK), Volker Treier, told news agency Reuters that the "wave of insolvencies continues." He added that small and medium-sized enterprises in particular were "running into difficulties."
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.