{"id":607200,"date":"2026-04-14T23:10:12","date_gmt":"2026-04-14T23:10:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/607200\/"},"modified":"2026-04-14T23:10:12","modified_gmt":"2026-04-14T23:10:12","slug":"jamie-dimon-says-private-credit-defaults-are-not-threat-to-major-banks-jp-morgan","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/607200\/","title":{"rendered":"Jamie Dimon says private credit defaults are not threat to major banks | JP Morgan"},"content":{"rendered":"

The boss of JP Morgan<\/a>, Wall Street\u2019s biggest bank, said a downturn across the $3tn private credit market would not put financial stability at risk, adding that losses would have to be \u201cvery large\u201d before the pain rippled out to major banks.<\/p>\n

Dimon played down the potential impact that a series of private credit loan defaults would have on the wider financial system, arguing that while there were some areas of of weakness, the unregulated industry<\/a> did not pose a \u201csystemic\u201d risk.<\/p>\n

\u201cThe actual credit hasn\u2019t gotten that much worse. There are pockets where it has \u2026 so we\u2019ll be watching it closely,\u201d Dimon told analysts during an earnings call on Tuesday. \u201cThe big point, to me, is \u2026 I don\u2019t think it\u2019s systemic.\u201d<\/p>\n

\u201cYou have to have very large losses in private credit before \u2013 at least it looks like \u2013 banks \u2026 get hit,\u201d he said. \u201cIt doesn\u2019t mean you won\u2019t feel some stress and strain, and you might have to do something about it, but I\u2019m not particularly worried,\u201d Dimon said.<\/p>\n

There have been growing jitters over potentially risky loans arranged by private credit firms<\/a>, which lend to companies using investor money \u2013 rather than customer deposits or loans backed by those deposits \u2013 outside the traditional regulated banking system. Those anxieties have led to a multibillion-pound surge in withdrawals from some private credit funds such as Blue Owl<\/a>, forcing them to cap the amount of money that clients can pull out.<\/p>\n

Wider concerns over the state of the industry, which boomed after stricter lending rules were imposed on traditional banks, emerged last autumn after the collapse of two private credit-backed US auto companies, Tricolor and First Brands. Both companies have since been hit with fraud allegations, raising concerns over whether private credit lenders may have been too lenient when deciding whether firms were worth lending to.<\/p>\n

Dimon himself warned in October that more \u201ccockroaches\u201d were likely to emerge<\/a> after the firms\u2019 collapse, while the IMF subsequently subsequently warned of potential ripple effects<\/a> that could ultimately hit high street banks.<\/p>\n

Big banks such as JP Morgan are also involved in private credit lending, but say they abide by stricter underwriting standards than some peers.<\/p>\n

Goldman Sachs\u2019s chief executive, David Solomon, said on Monday that the bank actually logged an increase in private credit investments in the first quarter. He suggested that while high-net-worth individuals were pulling cash from some \u201cretail\u201d funds, institutional investors that had a longer view of their investments were holding their ground.<\/p>\n

\u201cOur 30-year track record of performance and private credit is characterised by rigorous underwriting, selective deployment, and disciplined portfolio construction,\u201d Solomon said.<\/p>\n

JP Morgan on Tuesday reported a 13% jump in first-quarter profits to $16.5bn, while revenues rose 10% to $49.8bn.<\/p>\n","protected":false},"excerpt":{"rendered":"The boss of JP Morgan, Wall Street\u2019s biggest bank, said a downturn across the $3tn private credit market…\n","protected":false},"author":2,"featured_media":607201,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-607200","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/607200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=607200"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/607200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/607201"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=607200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=607200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=607200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}