J.P. Morgan Chase & Co could lose up to $5 billion from its exposure to Portugal, Ireland, Italy, Greece and Spain, Chief Executive Jamie Dimon said in an interview with Class CNBC, carried in Italian newspaper Milano Finanza on Saturday. Dimon said the bank was exposed to the five countries (PIIGS) to the tune of around $15 billion. "We fear we could lose up to $5 billion. We hope the worst won't happen, but even if it did happen, I wouldn't be pulling my hair out," he said.
Dimon said Europe was the worst problem for the banking sector. "But the EU and euro are solid even if the states will have to be financially responsible and do all they can to develop common social policies," he said. Dimon said the recent extraordinary liquidity measures taken by the European Central Bank had been a good move. "Banks will have to have more capital and sell assets, but at least they have liquidity," he said. Dimon said J.P. Morgan had bought back shares last year for $8 billion. "I hope in 2012 we will do more or less the same."
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