Jamie Dimon says private credit defaults are not threat to major banks

Losses in the private credit market would have to be ‘very large’ before they affected the wider banking system, according to Jamie Dimon. Photograph: Richard Drew/AP

The boss of JP Morgan, Wall Street’s biggest bank, said a downturn across the $3tn private credit market would not put financial stability at risk, adding that losses would have to be “very large” before the pain rippled out to major banks.

Dimon played down the potential impact that a series of private credit loan defaults would have on the wider financial system, arguing that while there were some areas of of weakness, the unregulated industry did not pose a “systemic” risk.