NEW YORK - January 14 2009 - The U.S. financial and economic crisis will worsen this year as hard-hit consumers default on credit cards and other loans, Jamie Dimon, chief executive of JPMorgan Chase, predicted in an interview with the Financial Times.

Mr. Dimon, whose bank will report fourth-quarter results on Thursday, gave his bleak assessment as shares on both sides of the Atlantic tumbled on rising fears that banks would need more capital, and a larger-than-expected fall in U.S. retail sales.

“The worst of the economic situation is not yet behind us. It looks as if it will continue to deteriorate for most of 2009,” said Mr. Dimon. “In terms of our sector, we expect consumer loans and credit cards to continue to get worse.”

Analysts predict that JPMorgan, which has navigated the financial turmoil better than most rivals, will just about break even in its fourth-quarter results.

Investor fears over the financial sector were stoked by Tuesday’s news that Citigroup is preparing to split off a third of the company into a “non-core” unit in a bid to ensure its survival.