Jamie Dimon, CEO of JPMorgan Chase, the largest U.S. bank, warned that current financial markets are showing signs similar to those seen before the 2008 financial crisis.
At JPMorgan's "company update" event on the 23rd (local time), Dimon said, "Unfortunately, we saw almost the same thing in 2005, 2006, and 2007. A rising tide lifted all boats, and everyone made a lot of money."
He added that while JPMorgan is not pursuing riskier loans to boost net interest income (NII), "I see some people doing stupid things. They're doing dumb things to generate net interest income."
Dimon predicted the credit cycle will eventually deteriorate again but said he is uncertain about the timing.
Last November, following bankruptcy filings by subprime auto lender Tricolor and auto parts supplier First Brands, Dimon warned of credit market risks, stating, "If one cockroach (bad loan) appears, there are probably more."
Regarding the "AI panic selloff" that has sent software company stocks plunging amid rapid artificial intelligence advancement, Dimon noted, "There are always unexpected variables in the credit cycle. The question has usually been which industry it will be. This time, it could be the software industry because of AI."
The financial industry, including his own firm, is also experiencing the AI-driven selloff. However, Dimon maintained confidence in his company's competitive position, stating, "In the end, out of 100 areas, we'll be winners in 75 and losers in 25."