In his closely read annual letter to shareholders, Dimon, who runs America’s largest and most profitable bank, said credit losses tied to indebted companies will be “higher than expected,” adding that the US$1.8-trillion private-credit market “probably does not present a systemic risk.” (The Logic)

Talking point: The warning builds on concerns Dimon has been raising for months. Last October, he warned of potential “cockroaches” in private credit that could rattle investor confidence, and last month JPMorgan was reportedly reducing its exposure to the sector by marking down the value of loans held as collateral. On AI, Dimon said adoption is likely to move “far faster” than past technological shifts such as electricity or the internet. The bank, he said, “will not put [its] head in the sand,” predicting the technology will create new jobs but “definitely eliminate some” as well. He also pointed to Canada as one of the countries moving to cut red tape, arguing that excessive regulation remains a barrier to competition and business formation.