Jamie Dimon Warns Of 'Another Weight On The Scale' After Banking Crisis: 'Don't Want This Domino Effect'

JPMorgan Chase CEO Jamie Dimon on Thursday said that the recent banking crisis in the U.S. puts "another weight on the scale" towards recession.

What Happened: Dimon, in an interview with CNN's Poppy Harlow, said, "we are seeing people reduce lending a little bit, cut back a little bit, pull back a little bit."

"It won't necessarily force a recession, but it is recessionary."

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Last month, the sudden collapse of Silicon Valley Bank and Signature Bank — which were the second and third largest bank failures in U.S. history — raised concerns about the possibility of contagion and a broader banking crisis.

First Republic Bank — which seemed to be on the brink of collapse — received a $30 billion bailout from eleven large banks, including JPMorgan, as part of an industry-wide effort to stabilize the country's financial sector.

Dimon warned that the banking scare is not quite over yet but said he is "hoping it will resolve rather shortly."

"Failure is okay," he said, adding, "you just don't want this domino effect."

In his annual letter to shareholders earlier, Dimon had conveyed similar thoughts. "As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come."

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