Photo: Stanford Graduate School of Business
In Washington, at an event at the U.S Chamber of Commerce, Jamie Dimon apologized for being the bearer of bad news.”I wouldn’t panic about what I’m about to say,” the JP Morgan head declared, before adding:
You’re going to see some municipalities not make it. I don’t think it’s going to shatter America, I just think it’s a part of the credit cycle.
It’s not going to be thousands.
JP Morgan’s muni portfolio is worth about $9.7 billion, with 26% of its holdings in local government bonds.
Dimon said “some municipalities will need to renegotiate their debt and a hundred may not ‘make it,'” Bloomberg reported.
Elizabeth Warren, who Dimon has been sparring with in the media for months, also spoke at the summit.