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- Han Kang's books sell out in South Korea after Nobel win
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- Asian markets mixed after Wall St drop, Shanghai dips before briefing
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- At least 10 dead in Florida after Hurricane Milton spawns tornadoes
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- Wall Street stocks retreat from records on US inflation data
- Israel strikes central Beirut, killing 22
- Solar storm could impact US hurricane recovery efforts: agency
- Delta eyes Election Day travel pullback as profits climb
- Florida battered by hurricane, floods but spared 'worst-case scenario'
- UK's William and Kate in first joint public engagement since cancer treatment
- Over 200 women in legal talks with Harrods over Fayed abuse claims
- A very stiff breeze: BBC says sorry for 20,000 kph wind forecast
- Musk finally unveiling his long-promised robotaxi
- London's Frieze art fair goes potty for ceramics
- US, Europe stocks fall on US inflation data
- US consumer inflation eases to 2.4% in September
- Hurricane Milton tornadoes kill four in Florida amid rescue efforts
- South Korea's Han Kang wins literature Nobel
- Ikea posts fall in annual sales after lowering prices
- Stock markets diverge, oil gains after China rebounds
- World can't 'waste time' trading climate change blame: COP29 hosts
- South Korean same-sex couples make push for marriage equality
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- Sri Lanka recovering faster than expected: World Bank
- Hong Kong, Shanghai rally as most markets track Wall St record
Latest banking crisis will be felt for years: JPMorgan Chase CEO
While the current banking crisis isn't like 2008, it "is not yet over" and will be felt for years to come, JPMorgan Chase Chief Executive Jamie Dimon said Tuesday.
Dimon, who has in coordination with Washington officials shaped the financial industry's response to the crisis, said recent bank failures "have significantly changed the market's expectations ... the stock market is down and the market's odds of a recession have increased," he wrote in his annual shareholder letter.
"And while this is nothing like 2008, it is not clear when this current crisis will end."
Much as in 2008, Dimon has played a key role in trying to support the system, this time by shoring up First Republic Bank following failures of Silicon Valley Bank and Signature Bank that were followed by the demise of Credit Suisse.
Although First Republic has stabilized somewhat since Dimon helped lead a joint $30 billion lifeline to the bank through a collaboration of 12 banks, the industry is not completely out of the woods yet, said Dimon, who highlighted the possibility that the Fed will need to keep interest rates high for longer than currently expected.
Current risks posing "storm clouds" include "higher inflation for longer, the market effects of (quantitative tightening) and growing political risks," Dimon said. "Of course, I cannot be sure this will happen, but I place higher odds on it than the 'market.'"
Dimon warned against backward-looking federal regulation, calling the current regime of Fed stress testing an "mind-numbingly complex task about crossing t's and dotting i's."
The Fed did not test for higher interest rates, a catalyst in recent failures, Dimon said.
"It should be noted that regulations, the supervisory regime and the resolution regime currently in place did not stop SVB and Signature Bank from failing -- and from causing systemwide issues," Dimon said.
"We should carefully study why this particular situation happened but not overreact."
A.Mykhailo--CPN