JP Morgan could lose up to $1bn through exposure to Russia, says boss

theguardian.com:

The JP Morgan chief executive, Jamie Dimon, has warned that the US bank could lose up to $1bn (£763m) from its exposure to Russia, as he called on the US government to deploy more troops, restructure supply chains and launch a new “Marshall plan” to ensure energy supply in response to the war in Ukraine.

In his widely read annual letter to investors, Dimon urged Joe Biden’s administration to take a stronger stance against the “grave new geopolitical realities” emerging after Russia’s invasion of Ukraine, saying it was up to democratic nations to take a stand “against all forms of evil”.

Dimon, who is one of the most high-profile bosses to comment on the conflict so far, also detailed the bank’s potential $1bn losses because of its direct exposure to Russia. JP Morgan announced it was winding down its Russia operations – which employ about 160 staff – last month.

“As I write this letter, the war in Ukraine has been raging for well over a month and is creating a significant refugee crisis. We do not know what its outcome ultimately will be, but the hostilities in Ukraine and the sanctions on Russia are already having a substantial economic impact. They have roiled global oil, commodity and agricultural markets,” he said.

However, Dimon said the war’s wider impact, including the “potential restructuring of the global order – is far more important”.

Noting that the war could impact geopolitics for decades, he added: “We must confront the Russia challenge with bold solutions.”

Dimon urged the US to develop a Marshall plan that would reduce the west’s reliance on Russian fossil fuels – referring to Harry Truman’s 1948 aid programme that helped western Europe recover from the second world war. “Our European allies, who are highly