“For the near term, volatility stays and will hinge on what happens in the crude market, whether we like it or not, and will determine the assumption of risk,” Ernie Cecilia, chief investment officer of Bryn Mawr Trust, told Reuters.
J.P. Morgan also warned that if oil prices fall to $25 for 18 months, the bank may need to up reserves by about $1.5 billion.
“I put [that]in the drop-in-the-bucket category,” J.P. Morgan Chairman and Chief Executive James Dimon told the WSJ. “It will have real adverse consequences in other parts, possibly some small banks and regional areas.”
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Max Chen contributed to this article.