Jamie Dimon Warns Auto Bankruptcies Signal Corporate Lending Excess
JPMorgan Chase CEO Jamie Dimon identifies auto industry bankruptcies as early warning signs of corporate lending excess. The banking leader cautions that extended credit bull market conditions may be masking systemic risks that could surface during economic downturns.
JPMorgan Chase CEO Jamie Dimon has identified recent auto company bankruptcies as early warning signs of excess in corporate lending, suggesting that the extended credit bull market since 2010-2012 may be masking systemic risks. Speaking to CNBC, the longtime leader of America’s largest bank pointed specifically to the collapse of auto parts firm First Brands and subprime car lender Tricolor Holdings as indicators that lending standards grew too lax over the past decade-plus.