Happy days are near again, says Dimon

The U.S. financial crisis is nearing an end, according to Jamie Dimon, chairman and chief executive of JPMorgan Chase & Co. of New York, who spoke to more than 1,200 members of the Washington-based Investment Company Institute yesterday in that city. “It’s 75% to 85% done,” he said. “I think we know most of the bad stuff now. I think within a year, most of this will have taken its course.” The financial crisis has gotten “kind of old,” according to Mr. Dimon, who added that it is like other crises the United States has experienced in the past, except for the housing bubble. The proliferation of complex products added to the financial crisis, he said, and some actions to correct the resulting problems of illiquidity may have fueled the cycle even further. “New products always have problems,” Mr. Dimon said. “I think you’ll see a lot of changes going forward.” More regulation is likely on the horizon. “But too much regulation can have a counter-effect and may force more and more capital private,” Mr. Dimon said. “Policies that are set should be set really clearly. I hope it is done very thoughtfully.” Mr. Dimon also said that JP Morgan’s recent acquisition of The Bear Stearns Cos. Inc. of New York averted a catastrophe for the U.S. financial system. “It wasn’t buying a house,” Mr. Dimon said of the deal. “It was buying a house on fire.”