"Wall Street Emperor" Dimon Says "Low Possibility of Additional Bank Acquisitions"

Jamie Dimon, chairman of JP Morgan Chase, known as the "Emperor of Wall Street," stated on the 16th (local time) that there are no plans to acquire any other institutions besides First Republic Bank, which went bankrupt due to the banking crisis.

According to economic media CNBC and others, Dimon responded "the possibility is low" when asked about the potential for additional acquisitions at the annual shareholders' meeting that day.

He evaluated that the banking turmoil triggered by the collapse of Silicon Valley Bank (SVB) in March showed that simply meeting regulatory requirements is not enough. Regarding the rapid interest rate hikes cited as one of the main causes of the SVB incident, he pointed out that "most of the risks related to the disruption in the U.S. banking system were hidden in places not easily visible."

Dimon also predicted that inflation and interest rates will inevitably remain at high levels for the time being. He confirmed that he is monitoring geopolitical risks, cyberattacks, and market turmoil as well.

[Image source=Reuters Yonhap News]

Meanwhile, amid growing concerns about a default related to the recent federal government's debt ceiling increase, top bank executives including Dimon are scheduled to meet with Treasury Secretary Janet Yellen in Washington on the afternoon of the 18th. CNN reported that the debt ceiling and banking crisis are expected to be the main topics of discussion at this meeting.

Earlier, Dimon warned in an interview with Bloomberg TV that a default would be a "potential disaster" for the United States. He believed that as the U.S. Congress responds to the increasing default concerns, the "worst-case scenario" could be avoided. However, he expressed concern that as the so-called X-day, when the federal government's cash reserves run out, approaches, "volatility in the stock and bond markets will increase, leading to panic."

U.S. President Joe Biden, House Speaker Kevin McCarthy, and other congressional leaders are scheduled to hold a second meeting on the debt ceiling later that afternoon.