(Photo: Gretchen Ertl/AP)

JPMorgan Chase is taking action in response to the coronavirus

The CEO of JPMorgan Chase, Jamie Dimon, warns shareholders of a coming deep recession in his annual letter to the shareholders addressing the response to the coronavirus (COVID-19) pandemic. Dimon warns shareholders of financial shocks similar to the 2008 Wall Street recession due to the poor financial planning of the U.S. in response to COVID-19.

Dimon discloses that the nation’s largest bank with the most assets was prepared to lend billions to clients through the economic downturn by stopping stock buybacks to protect itself amidst the economic shutdown.

Dimon explains that halting buyback was a required action and that he doesn’t know what the future will hold. He shifts the blame to U.S. leaders and the Trump administration for failing to financially prepare for the outbreak saying the pandemic serves as an example of bad management and planning to hurt America.

Dimon states it clearly that as a nation, the U.S. wasn’t prepared to handle this global pandemic and has resulted in devastating consequences. Though this is a rough time for the American economy, Dimon says that COVID-19 is forcing people to work together but is also improving civility through this hard time.

Washington is looking at methods to ease banking regulations and rules to encourage further lending that is much needed during this rough time. Dimon wants shareholder to recognize that JPMorgan Chase have not requested and regulatory relief but he doesn’t think it’s a bad idea.

Though JPMorgan Chase is not requesting regulatory relief, that this doesn’t mean the government shouldn’t change regulations and roles. Some regulations can improperly prevent well-capitalized banks from lending freely but this can hurt customers as the crisis worsens, leaving high-quality available liquidity unemployed during a crisis is an opportunity lost forever.