JPMorgan Chase CEO Jamie Dimon said that the ongoing crisis in the US banking sector was not over. In his annual letter to shareholders, Dimon pinpointed that the bank runs that led to the sudden collapse of Silicon Valley Bank (SVB) caused a crisis that was "not yet over" and could affect the financial services sector "for years to come." Although the authorities managed to contain the wave of panic, they still have a lot of work ahead. "As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come. While this is nothing like 2008, it is not clear when this current crisis will end," the JPMorgan Chase CEO said. Dimon argued that the problems of regional banks were beneficial to their larger rivals. The head of one of the largest US banks called these statements absurd, adding that "any crisis that damages Americans' trust in their banks damages all banks." In early March, California state regulators shut down Silicon Valley Bank, one of the top 20 US commercial banks. This has become the largest bankruptcy since the global financial crisis of 2008. SVB failed to withstand the Fed's aggressive policy. The key interest rate hikes depreciated the assets of many financial institutions. Crypto banks Silvergate and Signature Bank also suddenly collapsed after SBV.
