JP Morgan’s Dimon says Brexit will cost European clients

Jamie Dimon explained ‘duplicate costs’ created by Brexit will be borne by European Clients.

JP Morgan’s European customers are set to bear the brunt of costs following the result of the EU referendum, according to its chief executive Jamie Dimon.

In an interview with CNBC, Dimon explained the bank will incur ‘duplicate costs’ created from the outcome of the referendum.

He told the interviewer: “[Brexit] will create one-time costs and then duplicate costs which – and I hate to say this – will eventually be borne by our customers in Europe.”

Dimon explained Brexit was not something JP Morgan wanted to happen, but in the wake of the result, the bank will have to adapt to the new rules, which will cause more uncertainty for its clients. 

“We wanted to be able to passport financial services in the EU like we do today. If those rules change, and they could, then we have to change where we are and how we function,” he said.  

Dimon also considered the possible breakdown of the European Union, stating the scenario “could be one of the fat tail outcomes of Brexit.”

He said upcoming referendums across Europe, as well as the UK’s new leadership, is causing further uncertainty.

“It may take more than five years, but it very well could happen,” Dimon said.