J.P. Morgan Chase CEO Jamie Dimon said Wednesday it would be in the United Kingdom’s best interest to avoid a hard exit from the European Union.
“I think a hard Brexit will be a disaster for Great Britain,” Dimon said at the Economic Club of New York. “We don’t think it will happen because it’s bad for Europe too.”
Dimon’s comments came a day after the British parliament shot down a proposed Brexit deal by Prime Minister Theresa May’s government. That proposed deal had been previously approved by the EU. The deal’s defeat throws the exit process into chaos as the UK now has until Jan. 21 to push through a new agreement. It also led to Labour Party leader Jeremy Corbyn to call for a vote of no confidence in the government, which will be held later on Wednesday.
“The Brits were dealt a bad hand and they played it badly,” Dimon said. “I’m hoping they have a withdrawal agreement that gives them 2 to 4 years to negotiate a real deal.”
“We spent hundreds of millions of dollars to be prepared but a lot of people aren’t,” Dimon added about his bank’s plans.
A majority of UK voters decided in favor of leaving the European Union in June 2016. That decision sent ripples through global market. The pound, for example, has lost more than 14 percent of its value against the dollar since then.