DIMON: JPMorgan is prepared for $30 oil

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JPMorgan CEO Jamie Dimon.
source
Reuters

Jamie Dimon isn’t sweating the fall in oil prices.

“We’ve stress tested for $30 [per barrel] oil,” Dimon said during the question-and-answer portion of JPMorgan’s third-quarter earnings call.

The bankboosted reservesin the wholesale business in the third quarter after oil- and gas-related downgrades.

Dimon said that, at most, the bank would have to stock away another $750 million in capital reserves to offset potential losses.

The energy sector has been wreaking havoc on big Wall Street banks, with Jefferies reporting substantial losses in its credit business resulting from distressed energy positions.

It is also expected that big banks will pull the plugon lendingto energy companies.

It remains to be seen whether stress testing at $30 a barrel of oil will be enough to thwart another major market hiccup.

Goldman Sachs, for example, is predicting a possible fall to $20 a barrel.