JPMorgan CEO: Nonbanks can derail the recovery

Gee, ya think, Jamie???

During the Institute of International Finance Membership meeting in Washington D.C. on Friday, JPMorgan Chase(JPM) CEO Jamie Dimon said there isn’t a lot that will keep the U.S. economy down.

But the one thing that could derail the recovery:

The $3.2 trillion nonbank financial system, or “shadow banks.” Per CNBC:

When asked what keeps him up at night, he said nonbank lending poses a danger “because no one is paying attention to it.” He said the system is “huge” and “growing.”

Nonbank lending was a contributing factor in the financial crisis due to firms lending money to low-quality borrowers who then defaulted on mortgages in droves.

“I’m a real long-term bull on the U.S. economy,” he added. 

Source: CNBC

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