Dimon: Housing mess relief a year away

"it looks to me, [recession is] what we're in right now, JPMorgan Chase chairman and CEO James Dimon said.
MAR 13, 2008
By  Bloomberg
The clean-up of the subprime mortgage loans crisis is almost halfway done, but U.S. home prices likely will continue to decline for at least another year, JPMorgan Chase & Co. chairman and chief executive James Dimon said, according to a MarketWatch report. Asked if the U.S. is in a recession, he said, "it looks to me, what we're in right now, you'd probably call it that," In a speech to the Economic Club of Washington yesterday, Mr. Dimon estimated the financial clean-up is "about 50% done," with hedge funds deleveraging, "monoline" bond insurance companies raising capital, and banks propping up structured investment vehicles that held securities tied to risky subprime loans. On the housing front, Mr. Dimon said U.S. home prices have fallen 10% to 15% in some places, with some estimating they will decline by as much as 35% before stabilizing, perhaps in the first or second quarter of 2009.

Latest News

Private equity in 401(k)s is 'inevitable,' says Meketa Capital CEO
Private equity in 401(k)s is 'inevitable,' says Meketa Capital CEO

Michael Bell explains how the PE push in retirement plans will benefit investors, why warnings around risks may be overplayed, and what it will take to get plan fiduciaries comfortable with private investments.

IRA rollovers from DC plans to hit $1.15T by 2030, LIMRA says
IRA rollovers from DC plans to hit $1.15T by 2030, LIMRA says

Research highlights the dominant role of workplace retirement plans and breaks down the major factors dictating workers' IRA rollover decisions.

GReminders unveils autonomous AI assistant for financial advisors
GReminders unveils autonomous AI assistant for financial advisors

The wealth tech firm is rolling out its "Do Anything" assistant as leaders and strategists tout the next evolution of artificial intelligence.

Court strikes down SEC CAT funding plan, puts broker-dealer costs under fire
Court strikes down SEC CAT funding plan, puts broker-dealer costs under fire

Appeals court overturns SEC’s CAT funding plan, broker-dealers face new uncertainty.

FINRA fines second broker-dealer over misleading communication with clients about crypto
FINRA fines second broker-dealer over misleading communication with clients about crypto

TradeStation Securities' communications violated industry rules, including falling short on describing the risks involved in investing in volatile crypto assets.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.