SAN FRANCISCO (MarketWatch) — J.P. Morgan Chase Chief Executive Jamie Dimon said commercial real estate is a “train wreck” during a speech Monday, but noted that many of the problems in the sector have already happened and won’t affect the economy too much.
Dimon also said financial regulation is needed, but described the return of the Glass-Steagall Act, which separated commercial and investment banks, as a “quaint notion” and expressed frustration about recent criticism of the banking industry.
“Commercial real estate is a train wreck, but it’s already happened,” Dimon said during a speech at a J.P. Morgan /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 43.68, 0.00, 0.00%) health-care conference in San Francisco.
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I’m not sure if I understood it correctly but if the commercial real estate is a wreck it can’t affect the economy anymore because it has already done. Anyway, the worst situation is already behind us and I hope that we can expect upturn in upcoming months and may be years. E.g. situation in Canada has improved already. Residential property sales in Greater Vancouver totaled 2,515 in December 2009, an increase of 172.2% from the 924 sales recorded in December 2008.
Regards,
Jay