Transcripts

Credit Crunch May Be Easing But The Recession Is Only Beginning

JEFF YASTINE: The head of JPMorgan Chase says the credit crunch is almost over, but Chief Executive Jamie Dimon said a U.S. recession is just starting. Dimon believes there's a one in three chance the recession will be as bad as the economic downturn of the early 1980s. He made the comments at a UBS investor conference in New York City today. He also said his firm's takeover of Bear Stearns is quote, proceeding well and will eventually add as much as a billion dollars a year to JPMorgan's earnings. But Dimon warned integrating Bear's asset management and brokerage businesses will reduce earnings through next year.