JPMorgan’s Jamie Dimon sees parallel to pre-financial crisis era as rivals do ‘dumb things’

NEW YORK – JPMorgan Chase chief executive Jamie Dimon, asked about fierce competition across the financial industry, said he is starting to see parallels to the era before the 2008 financial crisis, when a rush to make loans ended disastrously.

“Unfortunately, we did see this in ’05, ’06 and ’07, almost the same thing – the rising tide was lifting all boats, everyone was making a lot of money,” he told investors on Feb 23.

JPMorgan is not willing to make riskier loans to boost net interest income (NII), he added. “I see a couple of people doing some dumb things. They are just doing dumb things to create NII.”

Mr Dimon, who led the largest US bank through the 2008 financial crisis and scooped up two major rivals that collapsed, said he expects the credit cycle will eventually sour again, though he is not sure when.

He has been warning for months about a potential deterioration in credit quality. When auto lender Tricolor Holdings and car parts supplier First Brands Group imploded in 2025, he said

seeing one “cockroach” meant more would likely crop up

.

In recent weeks, various industries have confronted the artificial intelligence “scare trade” as investors weigh how the new technology could disrupt markets.

“There’s always a surprise in a credit cycle,” Mr Dimon said, adding that the surprise has often been which industry. “This time around, it might be software because of AI.”

While that may prompt JPMorgan to scrutinise certain lending, he expressed doubt it would have a major impact on credit losses.

The financial industry, like many others, has also suffered stock declines in recent weeks because of AI concerns.

Mr Dimon said on Feb 23 he sees his bank as a winner in the AI race. “At the end of the day in 100 areas, we will be a winner in 75 and a loser in 25,” he noted.

In the wide-ranging question-and-answer session at what the bank called a “company update” for investors, he inevitably got asked about succession. He has run JPMorgan for 20 years, building it into the biggest and most profitable US bank along the way.

The question of when he might retire – and who might succeed him – has for years been a source of intrigue across Wall Street.

This time, his answer was broadly in line with recent responses. He will be at the bank for “a few years” as CEO, and “maybe a few after that” as executive chairman, he said, adding that it is ultimately up to JPMorgan’s board of directors. BLOOMBERG