COMPANY NEWS IN BRIEF

JPMorgan CEO says banking crisis increasedThe US bank crisis that rattled global markets last month is probably nearing the end, even if more unforeseen failures occur, JPMorgan Chase & Co. CEO Jamie Dimon said.Only a handful of lenders have the problems that toppled Silicon Valley Bank, and when the industry starts reporting quarterly earnings next week, the numbers will probably be good, Dimon told CNN. Asked if more bank failures might come, he said he didn’t know. "But if there are, I know honestly they’ll be resolved and it will probably be the last of them," Dimon said. "I think we’re getting near the end of this particular crisis."The CEO also said that it’s OK for a bank to fail in a system if a contagion to other lenders can be prevented. The banking system will reach that point with "monitoring, changing a few things," he said. "Failure is OK, you just don’t want this domino effect."Dimon, 67, has run JPMorgan since 2005, and is the only CEO from the 2008 financial crisis still in charge of a big bank. In a CNN report earlier Thursday, he said the recent turmoil in the financial industry had probably made a US recession more likely, though a downturn won’t necessarily happen."We are seeing people reduce lending a little bit, cut back a little bit and pull back a little bit," he said.US regional banks have been in turmoil after a run on deposits struck SVB and several other lenders. Rising interest rates depressed the value of bonds they bought when interest rates were low, and a sudden surge in customer withdrawals forced some of them to sell those assets at a loss. Dimon’s remarks build on an assessment he offered in an annual letter to shareholders earlier this week, in which he acknowledged that the collapse of Silicon Valley Bank and the emergency sale of Credit Suisse Group AG to UBS Group AG had "significantly changed the market’s expectations" for the economy.-Fin24Teck urging investors to support its planTeck Resources urged investors to support its plan for splitting its metals and coal businesses while reiterating opposition to a US$23 billion (R426 billion) takeover proposal from Glencore.Glencore’s offer to acquire Teck and then spin off the coal businesses “is a departure from reality,” Teck Chief Executive Officer Jonathan Price said in a Monday call with investors. “There is no path to a deal with Glencore.”Teck, one of Canada’s biggest mining companies, is stepping up its fight to win over investors to back a plan to separate its base metals business from steelmaking coal while fending off an unsolicited proposal from Glencore. The developments come as acquisition activity heats up in the mining industry, fueled by a need for more of the metals that underpin the global energy transition.Teck’s dual-class share structure means any takeover bid requires support of Canada’s Keevil family, whose patriarch has indicated he will not sell to Glencore at any price. However, other shareholders have an opportunity to block Teck’s plan announced in February to split the company at an April 26 vote.With a little more than two weeks before the vote, Teck and Glencore each have a tight deadline to win over investors. Teck’s separation requires two-thirds support from both categories of “supervoting” and regular shares, meaning that shareholders with just a small percentage of the total voting rights could have the power to scupper the plan and throw its future into question.-Fin24

COMPANY NEWS IN BRIEF

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Namibian Sun 2024-11-28

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COMPANY NEWS IN BRIEF

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Namibian Sun 2024-11-28

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