Just when you thought it was safe to enjoy the recovery, J.P. Morgan Chase CEO Jamie Dimon shows up with a strong word of caution about the stability of the global economy.
Though otherwise optimistic, Dimon told the Institute of International Finance that he is concerned about nonbank lending, particularly “because no one is paying attention to it.” He went on to note that despite the fact that non bank systems’ looser and less well defined underwriting standards were a major contributor to the 2008 financial meltdown, the system today is “huge” and “growing,” reports CNBC.
Dimon also referred to concerns about cybersecurity threats, particularly to the difficulties in combatting them as an international effort, given the variety of competing systems and regulatory frameworks in place, reports The Wall Street Journal.
“A lot of countries are doing their own thing,” Dimon said.
As a result, Dimon predicted that combating security threats was going to be an active priority going forward since the assualty “could go on for a long time.”
Apart from security worries and concerns about the $3.2 trillion dollar shadow banking industry that could disrupt the world economic system, Dimon described himself as generally bullish on the economy.
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“Innovation … it’s everywhere. It’s unbelievable,” Dimon noted during a panel discussion.
