Jamie Dimon, the CEO of JPMorgan Chase, signals that the recent bankruptcies in the auto sector indicate a correction in the credit market, after a period of loose lending.

Jamie Dimon, the CEO of JPMorgan Chase, warned that the recent bankruptcies in the American auto sector, including the collapse of First Brands and the subprime lender Tricolor Holdings, indicate the beginning of a correction after nearly 14 years of loose lending. Dimon emphasized that these bankruptcies could be signs of larger problems in the credit market, especially in the context of a possible recession. Although JPMorgan was not directly affected by the bankruptcy of First Brands, it suffered losses of $170 million from its exposure to Tricolor Holdings, a company specializing in financing car purchases. The bank's CFO mentioned that, although internal risk indicators remain stable, the bank is closely monitoring the labor market's developments. The bankruptcies were influenced by trade tensions between the U.S. and China, and Dimon concluded that these events should serve as a warning for the banking system, emphasizing that the credit market has been too relaxed.