JPMorgan Chase CEO Jamie Dimon is warning that the company could lose roughly $1 billion on Russian exposure amid Moscow’s invasion of Ukraine.
“We are not worried about our direct exposure to Russia, though we could still lose about $1 billion over time,” Dimon wrote in his annual letter to shareholders.
Dimon said JPMorgan Chase is “actively monitoring the impact of ongoing sanctions and Russia’s response, concerned as well about their secondary and collateral effects on so many companies and countries.”
“We have been steadfast in our operating principles to be prepared for the unpredictable. Rest assured that our management teams, hundreds of us, globally, have been working around the clock to do the right thing,” he added.
Dimon’s letter is widely read among top Wall Street figures and policymakers, according to Reuters. This year’s note is his 17th as CEO of the company.
The chief executive said the company is “facing challenges at every turn,” pointing to the COVID-19 pandemic, “unprecedented government actions,” a strong recovery following a global recession, “a highly polarized U.S. election,” increasing inflation and Russia’s invasion of Ukraine.
Dimon discussed the impact COVID-19, persistent inflation and Russia’s invasion of Ukraine will have on the economy.
“Each of these three factors mentioned above is unique in its own right: The dramatic stimulus-fueled recovery from the COVID-19 pandemic, the likely need for rapidly raising rates and the required reversal of [quantitative easing], and the war in Ukraine and the sanctions on Russia,” Dimon wrote.
He said those factors “present completely different circumstances than what we’ve experienced in the past — and their confluence may dramatically increase the risks ahead.”
“While it is possible, and hopeful, that all of these events will have peaceful resolutions, we should prepare for the potential negative outcomes,” he added.
Russia’s invasion of Ukraine is currently progressing through its fifth week. The U.S. and other Western countries have responded to the offensive by imposing sweeping sanctions on top Russian figures and banks, which have since hurt Moscow’s economy.
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