JPMorgan Chase CEO Jamie Dimon sees a "bad recession" in 2020. In his widely read annual letter to shareholders out Monday, he said the bank's earnings will be down - in his words - "meaningfully...”
And he warned the board might consider suspending its dividend, but only if the most dire predictions for the U.S. materialize. For example, if GDP were to plunge by as much as 35% in the second quarter and stay there for the rest of the year. But he said even under that adverse scenario, the bank would be able to boost lending to clients.
Dimon pledged the bank would keep supporting small businesses, pointing out that it had extended about $950 million in new loans to small firms. Dimon also said JPMorgan will provide a 90-day grace period for mortgage and auto loan payments and waive associated late fees. And it's giving its staff five additional paid days to help manage personal needs.
Shares of JPMorgan rose more than 6% at the market open, whittling away at the stock's nearly 40% decline so far this year.