Jamie Dimon warns of pre-financial crisis parallels, says some people doing ‘dumb things’

JPMorgan Chase CEO Jamie Dimon issued a warning that some of the conditions in financial markets are reminding him of the years leading up to the 2008 financial crisis.

"Unfortunately, we did see this in '05, '06, '07, almost the same thing," Dimon said Monday in remarks at JPMorgan Chase's annual investor day. "The rising tide was lifting all boats, everyone was making a lot of money, people leveraging to the hilt. The sky was the limit."

"I think today, the rising tide is lifting all boats. My own view is people are getting a little comfortable that this is real – these high asset prices and high volumes and that we don't have any kind of problem whatsoever," he added.

"I don't know how long it's going to be great for everybody. I see a couple of people doing some dumb things. They're just doing dumb things to create [net interest income]," Dimon added without referencing any specific institutions, while noting that JPMorgan Chase is being "quite cautious" and that the firms will "stick to our own rules."

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He went on to say that the biggest competitors to the nation's largest bank are back, including rivals from Europe and Japan. He said that's "good for the world" but cautioned that "I just don't know how long it's going to be great for everybody."

Dimon said that there is "always a surprise in a credit cycle" and that certain sectors may appear more stable than they actually are in the lead up to the emergence of a crisis.

"This time around, it might be software, because of AI," Dimon said. "There's moving tectonic plates underneath it, it causes the industry to be challenged."

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"There will be a cycle one day. I don't know what confluence of events will cause that cycle. My anxiety is high over it. I'm not assuaged by the fact that asset prices are high. In fact, I think that adds to the risk," he said.

Last fall, Dimon issued a similar warning about credit markets as JPMorgan Chase took a $170 million write-off following the bankruptcy of subprime auto lender and dealership Tricolor.

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He also noted that the bankruptcy of auto parts maker First Brands suggested there could be some credit problems looming in the economy.

"When you see one cockroach, there are probably more, and so everyone should be forewarned of this one," Dimon said at the time. "First Brands, I'd put in the same category, and there are a couple of other ones out that I've seen put in similar categories. We always look at these things, and we're not omnipotent – we make mistakes too."

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"We've had a credit bull market now for the better part of since 2010," he added. "These are early signs there might be some excess out there because of it. If we ever have a downturn, you're going to see quite a few more credit issues."