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close video Jamie Dimon: ‘High’ gov. debt has ‘potentially disastrous outcomes’

JPMorgan Chase CEO Jamie Dimon says banks will be there for customers in good times and bad.

JPMorgan Chase CEO Jamie Dimon weighed in on fiscal policy under a new Congress and voiced concerns around rising debt’s macroeconomic impact in an exclusive four-part interview that aired on "Mornings with Maria" Tuesday.

While the U.S. government’s debt sits at $31 trillion and isn’t "today’s problem," according to Dimon, trying to pay it off one day will be a "hockey stick" to the economy and Americans’ pocketbooks.

"I'm talking about on the day that America can't pay its debt, that has potentially disastrous outcomes. Once American debt goes into default, a lot of people can't own it anymore and American debt doesn't cross-default, but it's cumulative," the CEO told host Maria Bartiromo.

"The [Treasury bill] defaults, and the next week T-bill defaults, the next week T-bill defaults, pension plans have to sell," Dimon continued. "It is so potentially dangerous we shouldn't get anywhere near it. And after all the shenanigans of politics, we're going to have to fix this. I think it's very bad for the nation to constantly be looking at this type of thing."

JPMORGAN'S JAMIE DIMON MORE OPTIMISTIC ON U.S. CONSUMER

Dimon further expressed worries about the fiscal regulatory system in America but argued "strong" consumer sentiment and balance sheets – combined with the "right" policy – could help the economy grow by 3%.

Jamie Dimon, chairman and chief executive officer of JPMorgan Chase, says rising U.S. debt has “potentially disastrous outcomes” in an exclusive interview on “Mornings with Maria.” (Getty Images)

"I'm a little more worried about the regulatory system in America, the litigious system, the regulatory system. We're slowing down the formation of business, growth, permitting infrastructure projects. We shouldn't have infrastructure projects take five or seven years," JPMorgan Chase’s CEO argued. "So think, if you're about to put $1 billion into offshore wind and all of a sudden you thought you can do it in two years, but it's going to be 7 to 10 and you don't know and you have to have a lot of litigation aside, are you going to do the $1 billion? And that has become a far bigger problem than dealing with certain types of smaller regulations."

One of the problematic systems involves U.S. energy, according to Dimon, who doubled down on his support for investing in domestic producers’ plans for more pipelines and drilling permits. During a House Financial Services Committee hearing last year, the CEO had said halting funds for new oil and gas products "would be the road to hell for America."

"I believe we should be doing things about climate, CO2, but it's not a simple thing like just stop financing them," Dimon said. "So if I can stop financing a good oil company, that isn't going to help. What we need is pipelines, permits. We can't even get the permits to build solar… we need very comprehensive policy, and I don't think we have that right yet. I think we're spending too much time just yelling and screaming at each other as opposed to what we need to accomplish these very important goals of climate sustainability and resiliency, and efficient and effective oil price and delivery." close video GOP-controlled Congress needs to enact ‘competent policy’: Jamie Dimon

JPMorgan Chase CEO Jamie Dimon calls for policy reform in education, healthcare, immigration and more in an exclusive interview on ‘Mornings with Maria.’

Dimon explained he doesn’t publicly blame or support one party over the other, but that the newly sworn-in Congress should put forward other "competent" policies in education, health care, infrastructure and even immigration.

"We need an immigration policy. We need to stop illegal immigration. We need more legal immigration," the CEO said. "I would have a heart for DACA and things like that. So if we do those things right, we're going to grow 3%."

Rising interest rates and unwinding balance sheets from the Federal Reserve could also create an economic "problem," according to Dimon. The Fed has indicated taking $2 or $3 trillion of cash out of its balance sheet by selling securities.

"At one point, that may cause all of this volatility in the markets and stuff like that. And they'll have to deal with it when they get there," Dimon said. "And part of it is rules and regulations, part of it's the money, part of it's the fiscal stimulus. It's kind of a complex type of thing. But I do expect at one point they'll cause a problem."

GET FOX BUSINESS ON THE GO BY CLICKING HERE close video J.P. Morgan Healthcare Conference serves as ‘birthplace of a lot of deals’: Jamie Dimon

JPMorgan Chase CEO Jamie Dimon discusses the state of the company and macroeconomic picture in an exclusive interview on ‘Mornings with Maria.’

Preparing for an economic "crisis" means gathering the best weapons in your personal arsenal to avoid economic volatility fueled by policy, Dimon noted.

"In terms of crisis, it's having the army to fight it beforehand, proper margins, proper accounting, and then when they happen, you better move very quickly and kind of do the right thing," he said. "It's the type of thing that Warren Buffett refers to, it doesn't go backward, it may stop going forward sometimes, but it's always growing and innovating. And part of it is this enormously prosperous economy, which we need to make sure we keep prosperous."

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Landeskog scores 1st NHL goal in nearly 3 years

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Landeskog scores 1st NHL goal in nearly 3 years

Perhaps the only detail more emphatic than the goals in the Colorado Avalanche‘s 4-0 win over the Dallas Stars Saturday night, was the impact provided by their captain, Gabriel Landeskog.

Landeskog, who returned in Game 3 of this Western Conference first-round series after missing nearly three seasons while recovering from a knee injury, scored his first goal since June 20, 2022, in a multi-point performance that saw the Avalanche tie the series at 2-2 in Game 4 at Ball Arena. Game 5 is Monday in Dallas.

“It means a lot,” Landeskog told reporters after the win. “Obviously, I’ve envisioned scoring again for a long time. There obviously days when I didn’t know if I was ever going to score again. It obviously feels good. It’s a tight playoff series in a big game here at home. To get to do it here at home in front of our fans obviously means a means a lot. Super exciting. Hopefully more to come.”

A short-handed goal from Logan O’Connor midway through the first period followed by a late power-play goal from Nathan MacKinnon staked the Avalanche to a 2-0 lead entering the second period.

That set the stage for Landeskog, who was in the slot when Brock Nelson fed a pass that the 32-year-old winger launched for a one-timer that beat Stars goaltender Jake Oettinger for a 3-0 lead.

Landeskog, who was playing on the second line, was instantly mobbed by his teammates on the nice such as Samuel Girard, Valeri Nichushkin, Devon Toews and Nelson, who joined the Avalanche at the NHL trade deadline.

As Landeskog returned to the bench, he was congratulated by the entire team which also included a hug from a smiling MacKinnon, who along with Landeskog, have been with the franchise for more than a decade.

“I was just proud of him again,” Avalanche coach Jared Bednar told reporters after the game. “I was proud of him regardless of if he scores or not because I know what he’s gone through, and I know how difficult that was. I think that takes it to another level. You know he wants to come back and contribute like he did in the past and he’s off to a great start.”

Landeskog’s goal was the latest milestone in what’s been a lengthy recovery from a chronically injured right knee. He missed what amounted to 1,032 days since his last NHL game.

In that time, the Avalanche have remained in a championship window but have dramatically altered their roster. The Avs have nine players from that championship team who have remained with the franchise and have since reshuffled a roster that led to them re-acquiring defenseman Erik Johnson, one of Landeskog’s closest friends, in their bid for the fourth title in franchise history.

Even with all the changes, there were still questions about when they could see Landeskog return to the lineup. And if Landeskog did return, what he could look like?

His first professional game in three years came April 11 with the Avalanche’s AHL affiliate where he logged 15 minutes. Landeskog would then score a goal and get an assist in his second and final game.

And much like his AHL stint, all it took was two games for Landeskog to score and have another two-point performance.

While Landeskog’s goal became the most celebrated moment of the evening, what he did to help create the Avalanche’s fourth goal was an example of why he’s so crucial to their title aspirations.

Landeskog played a pass to Nelson who then found a Girard for a shot from the point that gave the Avs a 4-0 lead in the fourth. In the time Landeskog passed the puck, he anchored himself at the net front to gain position on 6-foot-7 Stars defensemen Lian Bichsel to screen goaltender Casey DeSmith, who replaced Oettinger for the third period.

Jockeying with Bichsel, who is six inches taller and 16 pounds heavier, allowed Landeskog to test both his strength and that right knee to gain leverage.

The result? Girard’s shot found space in traffic with Landeskog making it hard for DeSmith to see the puck.

“He’s a big boy,” Landeskog said with a smile. “He’s a big strong guy, a physical player and hard to play against. I was trying to get in front of their goal, and he was trying to get me out of there. It was a good battle.”

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Several killed after vehicle drives into crowd at street festival, police in Vancouver say

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Several killed after vehicle drives into crowd at street festival, police in Vancouver say

A number of people have been killed and multiple others injured after a driver drove into a crowd at a street festival in Vancouver, police have said.

The driver has been taken into custody after the incident shortly after 8pm local time on Saturday, police added.

People were in the area near 41st Avenue and Fraser Street for the Lapu Lapu Day Block Party, named after a national hero of the Philippines.

Vancouver’s mayor Ken Sim said in a post on X: “I am shocked and deeply saddened by the horrific incident at today’s Lapu Lapu Day event.”

He added: “Our thoughts are with all those affected and with Vancouver’s Filipino community during this incredibly difficult time.”

Video posted on social media showed victims and debris strewn across a long stretch of road, with at least seven people lying immobile on the ground.

A black SUV with a crumpled front section could be seen in photos from the scene.

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Politics

US crypto rules like ‘floor is lava’ game without lights — Hester Peirce

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<div>US crypto rules like 'floor is lava' game without lights — Hester Peirce</div>

<div>US crypto rules like 'floor is lava' game without lights — Hester Peirce</div>

SEC Commissioner and head of the crypto task force, Hester Peirce, says US financial firms are navigating crypto in a way that’s similar to playing the children’s game “the floor is lava,” but in the dark.

“It is time that we find a way to end this game. We need to turn on the lights and build some walkways over the lava pit,” Peirce said at the SEC “Know Your Custodian” roundtable event on April 25.

The lava is crypto, says Peirce

Peirce explained that SEC registrants are forced to approach crypto-related activities like “the floor is lava,” where the aim is to jump from one piece of furniture to the next without touching the ground, except here, touching crypto directly is the lava.

“A D.C. version of this game is our regulatory approach to crypto assets, and crypto asset custody in particular,” she said.

Peirce said that, much like in the game, firms wanting to engage with crypto must avoid directly holding it due to unclear regulatory rules. “To engage in crypto-related activities, SEC-registrants have had to hop from one poorly illuminated regulatory space to the next, all while ensuring that they never touch any crypto asset,” Peirce said.

Cryptocurrencies, SEC, United States
Source: US Securities and Exchange Commission

Peirce said that investment advisers are often unsure which crypto assets qualify as securities, what entities count as qualified custodians, and whether “exercising staking or voting rights” could trigger custody violations.

“The twist in the regulatory version is that it is largely played in the dark: burning legal lava and no lamps to illuminate the way.”

Peirce also said that a broker or ATS that cannot custody or manage crypto assets will struggle to facilitate trading, making it unlikely for a “robust market” to develop.

Echoing a similar sentiment, SEC Commissioner Mark Uyeda said at the event that as more SEC registrants work with crypto assets, it’s essential that they have access to custodial options that meet legal and regulatory requirements.

Uyeda said the agency should consider letting advisers use “state-chartered limited-purpose trust companies” with the authority to hold crypto assets as qualified custodians.

Related: Blockchain needs regulation, scalability to close AI hiring gap

Meanwhile, the recently sworn-in chair of the SEC, Paul Atkins, said that he expected “huge benefits” from blockchain technology through efficiency, risk mitigation, transparency, and cutting costs.

He reiterated that among his goals at the SEC would be to facilitate “clear regulatory rules of the road” for digital assets, hinting that the agency under former chair Gary Gensler had contributed to market and regulatory uncertainty.

“I look forward to engaging with market participants and working with colleagues in President Trump’s administration and Congress to establish a rational fit-for-purpose framework for crypto assets,” said Atkins.

Magazine: Bitcoin $100K hopes on ice, SBF’s mysterious prison move: Hodler’s Digest, April 19 – 25

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