Chase CEO details coronavirus relief measures
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
The ongoing spread of COVID-19 has suppressed activity in nearly every sector of the economy. Today, in his annual letter to shareholders, JP Morgan CEO Jamie Dimon outlined some of the steps his bank will be taking to help affected customers.
JP Morgan’s coronavirus relief measures
While we tend to focus on JP Morgan’s credit card portfolio here at TPG, the company manages over $2 trillion across a wide range of financial products including mortgages and car loans. JP Morgan’s relief efforts reflect this diverse array of business activity, including the following:
- Providing a 90-day grace period for mortgage and auto loan/lease payments and waiving any associated late fees.
- Removing minimum payment requirements on credit cards and waiving associated late fees.
- Not reporting payment deferrals such as late payments to credit bureaus for up-todate clients.
- Continuing to responsibly lend to qualified consumers.
- Waiving or refunding some fees, including early withdrawal fees on certificates of deposit.
Reduced fees, payment flexibility and grace periods are sure to provide immediate relief to customers who may be out of work right now, but it’s good to see Chase taking the next step and not reporting deferred payments to credit bureaus. This means that customers won’t have to worry about any negative impact on their credit report if they choose to take advantage of one of these programs.
Many of JP Morgan’s customers will qualify for some type or assistance here, but in most cases it won’t be provided automatically. You can visit Chase’s dedicated coronavirus webpage to request payment assistance, find updated branch hours, and get help disputing charges that have been affected by the coronavirus (including travel plans).
Dimon predicts a “major recession”
The annual shareholder letter covers a wide range of topics and includes detailed financial information about many of JP Morgan’s subsidiary businesses, but it’s also an opportunity for the chief executive to share his insight and outlook on prevailing market conditions. It’s quite obvious that the coronavirus is negatively impacting the U.S. economy, but the full extent of that impact may not be known for months or even years. However, Dimon is predicting that the U.S. will face a major recession:
“We don’t know exactly what the future will hold – but at a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008. Our bank cannot be immune to the effects of this kind of stress. “
However, it’s not all doom and gloom. Dimon notes that JP Morgan is coming off record years in terms of both revenue and profit and has performed well in the Federal Reserve’s annual stress tests and the banks own internal testing. The latest stress test showed that even in extremely adverse financial conditions, JP Morgan can continue to lend out an additional $150 billion to its clients. The bank voluntarily suspended stock buybacks recently to preserve capital and liquidity and may reduce or suspend its dividend payment if the situation deteriorates further.
Related Reading: Best Chase credit cards
JP Morgan is one of the largest companies in the US, with hundreds of thousands of employees, customers and clients. CEO Jamie Dimon projected strength in his annual letter to shareholders, noting that the bank is taking immediate action to help its customers and its well prepared to weather further economic challenges. For Chase customers, hopefully this news provides some relief during these uncertain times.
Featured image by Michael Brochstein/SOPA Images/LightRocket via Getty Images
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases within the first three months of card membership. Plus, earn a $200 statement credit after your first Delta purchase within the first three months. Offer ends 7/28/21.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles after spending $3,000 in purchases on your new Card in your first 3 months and a $200 statement credit after you make a Delta purchase with your new Card within your first 3 months. Offer expires 7/28/2021.
- Limited Time Offer: Plus, get a 0% intro APR on purchases for 12 months from the date of account opening, then a variable 15.74%-24.74%. Offer expires 7/28/2021.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees