Dimon Says Risk of $3 Billion in European Losses Worth Taking for JPMorgan
JPMorgan Chase & Co. Ceo Jamie Dimon
Andrew Harrer/Bloomberg
Jamie Dimon, chief executive officer of JPMorgan Chase & Co.
Jamie Dimon, chief executive officer of JPMorgan Chase & Co. Photographer: Andrew Harrer/Bloomberg
JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said potential rewards of investing in five European nations including Greece and Ireland outweigh the risk of losing $3 billion if the countries default.
“In the unlikely occurrence of extremely bad outcomes in all these countries, JPMorgan Chase ultimately could lose approximately $3 billion,” Dimon said today in a letter to shareholders. “But we are in the business of taking risks in support of our clients and believe that this is a risk worth bearing since we hope to be growing our business in these countries for decades.”
Portugal is set to start hammering out a bailout package that may total 75 billion euros ($107 billion), following Greece and Ireland in seeking European Union aid. Nations in the continent are seeking to quell the sovereign debt crisis that threatened to splinter the euro region.
“In the next year or two, we believe that the Euro Zone, in fits and starts, will work through its problems,” Dimon wrote. “It has the will and wherewithal to do so.”
JPMorgan had about $20 billion in net exposure to Greece, Ireland, Portugal, Spain and Italy when the crisis began, and the company scaled back some investments while continuing to serve clients, he said.
To contact the reporter on this story: Laura Marcinek in New York at Lmarcinek3@bloomberg.net
To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net
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