JP Morgan could lose up to $1bn through exposure to Russia, says boss

The JP Morgan chief govt, Jamie Dimon, has warned that the US financial institution may lose as much as $1bn (£763m) from its publicity to Russia, as he known as on the US authorities to deploy extra troops, restructure provide chains and launch a brand new “Marshall plan” to make sure power provide in response to the warfare in Ukraine.

In his broadly learn annual letter to traders, Dimon urged Joe Biden’s administration to take a stronger stance in opposition to the “grave new geopolitical realities” rising after Russia’s invasion of Ukraine, saying it was as much as democratic nations to take a stand “in opposition to all types of evil”.

Dimon, who is without doubt one of the most high-profile bosses to touch upon the battle thus far, additionally detailed the financial institution’s potential $1bn losses due to its direct publicity to Russia. JP Morgan introduced it was winding down its Russia operations – which make use of about 160 workers – final month.

“As I write this letter, the warfare in Ukraine has been raging for nicely over a month and is creating a big refugee disaster. We have no idea what its final result in the end can be, however the hostilities in Ukraine and the sanctions on Russia are already having a considerable financial influence. They've roiled world oil, commodity and agricultural markets,” he mentioned.

Nonetheless, Dimon mentioned the warfare’s wider influence, together with the “potential restructuring of the worldwide order – is much extra essential”.

Noting that the warfare may influence geopolitics for many years, he added: “We should confront the Russia problem with daring options.”

Dimon urged the US to develop a Marshall plan that would scale back the west’s reliance on Russian fossil fuels – referring to Harry Truman’s 1948 support programme that helped western Europe recuperate from the second world warfare. “Our European allies, who're extremely depending on Russian power, require our assist,” he mentioned.

“As we're seeing – and know from previous expertise – oil and fuel provide may be simply disrupted, both bodily or by extra sanctions, considerably impacting power costs. Nationwide safety calls for power safety for ourselves and for our allies abroad,” he mentioned.

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The banking chief added that the US response must also contain broader sanctions, a bigger US army finances and deploying extra troops to Nato’s borders “as applicable”, including that the US authorities ought to pledge billions of dollars to rebuild Ukraine and help migrants in Europe.

“America should be prepared for the potential of an prolonged warfare in Ukraine with unpredictable outcomes. We should always put together for the worst and hope for the perfect. We should take a look at this as a wake-up name,” the letter urged.

“We have to make this a everlasting, long-lasting stand for democratic beliefs and in opposition to all types of evil.”