Mortgage

JPMorgan CEO: Nonbanks can derail the recovery

"No one is paying attention to it"

During the Institute of International Finance Membership meeting in Washington D.C. on Friday, JPMorgan Chase (JPM) CEO Jamie Dimon said there isn’t a lot that will keep the U.S. economy down.

But the one thing that could derail the recovery:

The $3.2 trillion nonbank financial system, or “shadow banks.” Per CNBC:

When asked what keeps him up at night, he said nonbank lending poses a danger "because no one is paying attention to it." He said the system is "huge" and "growing."

Nonbank lending was a contributing factor in the financial crisis due to firms lending money to low-quality borrowers who then defaulted on mortgages in droves.

"I'm a real long-term bull on the U.S. economy,” he added. 

3d rendering of a row of luxury townhouses along a street

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