A New York federal judge warned JPMorgan Chase that he might find the bank in contempt of court if it does not speed up in producing evidence related to late sexual offender and money manager Jeffrey Epstein for lawsuits by an Epstein accuser and the government of the U.S. Virgin Islands, CNBC has learned.

Judge Jed Rakoff suggested in a notice that JPMorgan and two law firms representing the bank have been slow-walking in turning over documents and other evidence to plaintiffs in the case, under a process known as discovery, according to a source familiar with the notice.

The notice comes two weeks before JPMorgan CEO Jamie Dimon is scheduled to be questioned under oath by plaintiffs’ lawyers for the civil suits, which accuse his bank of enabling and benefiting from Epstein’s alleged sex trafficking of young women.

“The Court also wishes to note that it is concerned that JPMorgan is not moving more expeditiously to produce responsive documents,” Rakoff wrote in the notice, which has yet to appear on the public docket in the case in U.S. District Court in Manhattan.

“While the Court appreciates the large volume of discovery that is to be completed in this case, a company as large as JPMorgan and counsel as experienced as WilmerHale and Massey & Gail should be able to move with greater speed than what was revealed by this incident,” the judge wrote, referring to the bank’s two law firms.

“So JPMorgan is put on notice that further expedition will be needed on pain of being put in contempt of Court,” Rakoff wrote.

A JPMorgan spokesperson had no comment on the notice.

Epstein, who died from a jailhouse suicide in 2019 shortly after being arrested on federal child sex trafficking charges, was a long-time customer of the bank until 2013.

The lawsuits allege the bank allowed Epstein to remain a client despite evidence he was using millions of dollars he kept on deposit to facilitate his trafficking of girls and young women to his private island in the Virgin Islands and elsewhere.

Five years before JPMorgan ended its customer relationship with Epstein, he pleaded guilty in Florida state court to soliciting sex for money from an underage girl and served 13 months in jail.

Before his conviction, Epstein was friends with former presidents Donald Trump and Bill Clinton, as well as Prince Andrew of Britain.

JPMorgan denies any wrongdoing, and in its own civil complaint the company has said former bank executive Jes Staley would be legally responsible for any liability arising from its relationship with Epstein.

Staley spent three decades at JPMorgan and had close contact with Epstein — whom he considered a friend — over the years when Epstein was a customer.

Rakoff, in a court ruling published in early May, noted that “plaintiffs allege that Mr. Staley had first-hand knowledge of Jeffrey Epstein’s sex-trafficking operation.”

“Mr. Staley is alleged to have visited Epstein’s residences several times while that operation was ongoing, and, during these visits, observed [the Epstein accuser suing JPMorgan] ‘as a sexual trafficking and abuse victim,'” Rakoff noted.

“Plaintiffs further allege that Mr. Staley himself abused some of Epstein’s victims, including” the woman suing the bank, the judge wrote. That woman claims that “‘one of Epstein’s friends’ — whom she later identified as Mr. Staley — ‘used aggressive force in his sexual assault of her and informed [her] that he had Epstein’s permission to do what he wanted to her.'”

In his own court filing, Staley called the accusations against him “baseless,” and he has denied knowledge of Epstein’s sex trafficking.

Staley stepped down as CEO of British banking giant Barclays in late 2021 after an inquiry by a United Kingdom regulator into how he had characterized his relationship with Epstein to Barclays.

If you are having suicidal thoughts or are in distress, contact the Suicide & Crisis Lifeline at 988 for support and assistance from a trained counselor.

The surge of deposits moving from smaller banks to big institutions including JPMorgan Chase and Wells Fargo amid fears over the stability of regional lenders has slowed to a trickle in recent days, CNBC has learned.

Uncertainty caused by the collapse of Silicon Valley Bank earlier this month triggered outflows and plunging share prices at peers including First Republic and PacWest.

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The situation, which roiled markets globally and forced U.S. regulators to intervene to protect bank customers, began improving around March 16, according to people with knowledge of inflows at top institutions. That’s when 11 of the biggest American banks banded together to inject $30 billion into First Republic, essentially returning some of the deposits they’d gained recently.

“The people who panicked got out right away,” said the person. “If you haven’t made up your mind by now, you are probably staying where you are.”

The development gives regulators and bankers breathing room to address strains in the U.S. financial system that emerged after the collapse of SVB, the go-to bank for venture capital investors and their companies. Its implosion happened with dizzying speed this month, turbocharged by social media and the ease of online banking, in an event that’s likely to impact the financial world for years to come.

Within days of its March 10 seizure, another specialty lender Signature Bank was shuttered, and regulators tapped emergency powers to backstop all customers of the two banks. Ripples from this event reached around the world, and a week later Swiss regulators forced a long-rumored merger between UBS and Credit Suisse to help shore up confidence in European banks.

The dynamic has put big banks like JPMorgan and Goldman Sachs in the awkward position of playing multiple roles simultaneously in this crisis. Big banks are advising smaller ones while participating in steps to renew confidence in the system and prop up ailing lenders like First Republic, all while gaining billions of dollars in deposits and being in the position of potentially bidding on assets as they come up for sale.

The broad sweep of those money flows are apparent in Federal Reserve data released Friday, a delayed snapshot of deposits as of March 15. While large banks appeared to gain deposits at the expense of smaller ones, the filings don’t capture outflows from SVB because it was in the same big-bank category as the companies that gained its dollars.

Although inflows into one top institution have slowed to a “trickle,” the situation is fluid and could change if concerns about other banks arise, said one person, who declined to be identified speaking before the release of financial figures next month. JPMorgan will kick off bank earnings season on April 14.

At another large lender, this one based on the West Coast, inflows only slowed in recent days, according to another person with knowledge of the matter.

JPMorgan, Bank of America, Citigroup and Wells Fargo representatives declined to comment for this article.

The moves mirror what one newer player has seen as well, according to Brex co-founder Henrique Dubugras. His startup, which caters to other VC-backed growth companies, has seen a surge of new deposits and accounts after the SVB collapse.

“Things have calmed down for sure,” Dubugras told CNBC in a phone interview. “There’s been a lot of ins and outs, but people are still putting money into the big banks.”

The post-SVB playbook, he said, is for startups to keep three to six months of cash at regional banks or new entrants like Brex, while parking the rest at one of the four biggest players. That approach combines the service and features of smaller lenders with the perceived safety of too-big-to-fail banks for the bulk of their money, he said.

“A lot of founders opened an account at a Big Four bank, moved a lot of money there, and now they’re remembering why they didn’t do that in the first place,” he said. The biggest banks haven’t historically catered to risky startups, which was the domain of specialty lenders like SVB.

Dubugras said that JPMorgan, the biggest U.S. bank by assets, was the largest single gainer of deposits among lenders this month, in part because VCs have flocked to the bank. That belief has been supported by anecdotal reports.

For now, attention has turned to First Republic, which has teetered in recent weeks and whose shares have lost 90% this month. The bank is known for its success in catering to wealthy customers on the East and West coasts.

Regulators and banks have already put together a remarkable series of measures to try to save the bank, mostly as a kind of firewall against another round of panic that would swallow more lenders and strain the financial system. Behind the scenes, regulators believe the deposit situation at First Republic has stabilized, Bloomberg reported Saturday.

First Republic has hired JPMorgan and Lazard as advisors to come up with a solution, which could involve finding more capital to remain independent or a sale to a more stable bank, said people with knowledge of the matter.

If those fail, there is the risk that regulators would have to seize the bank, similar to what happened to SVB and Signature, they said. A First Republic spokesman declined comment.

While the deposit flight from smaller banks has slowed, the past few weeks have exposed a glaring weakness in how some have managed their balance sheets. These companies were caught flat-footed as the Fed engaged in its most aggressive rate hiking campaign in decades, leaving them with unrealized losses on bond holdings. Bond prices fall as interest rates rise.

It’s likely other institutions will face upheaval in the coming weeks, Citigroup CEO Jane Fraser said during an interview on Wednesday.

“There could well be some smaller institutions that have similar issues in terms of their being caught without managing balance sheets as ably as others,” Fraser said. “We certainly hope there will be fewer rather than more.”

The declines came despite Sunday’s news that the Federal Reserve created a new Bank Term Funding Program that will offer loans for up to a year to banks in return for high-quality collateral like Treasurys. The central bank also eased conditions at its discount window.

First Republic said Sunday it had received additional liquidity from the Federal Reserve and JPMorgan Chase. The bank said the move raises its unused liquidity to $70 billion, before any funding it could get from the new Fed facility.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” said founder Jim Herbert and CEO Mike Roffler in a statement.

Herbert also told CNBC’s Jim Cramer on Monday that the bank was operating as usual and was not seeing that many depositors leave.

Western Alliance said in a statement that it is seeing “moderate” outflows and that it had taken additional steps to strengthen its liquidity.

Meanwhile, the SPDR S&P Regional Banking ETF lost 12% on Monday following a 16% decline last week.

The slide for regional bank stocks on Monday comes after a rush of withdrawals from SVB Financial forced that bank to close. A key issue was SVB’s high percentage of uninsured deposits, as the majority of the bank’s customers were not guaranteed to get their money back before the regulatory moves over the weekend.

While SVB had an unusually high percentage of uninsured deposits, there are other midsized banks that could be at risk of large withdrawals.

“We believe regionals with less diversified and large uninsured deposit bases are at risk of deposit flight but not at the speed of SVB and they should have time to tap wholesale funding markets (such as FHLB) and raise cash levels. In a fragile environment like we are in, we believe banks should be cautious about the potential negative signaling effect of raising deposit rates to keep deposits,” Citi analyst Keith Horowitz said in a note to clients.

SVB was the largest U.S. bank failure since 2008, with $212 billion in assets. First Republic reported roughly $213 billion in assets as of Dec. 31, according to a securities filing.

While First Republic is not as concentrated in one industry as SVB was with technology, the bank does tend to cater to businesses and wealthy individuals who have large uninsured deposits.

“Unfortunately, one of the first consequences of SIVB’s collapse is probably that it will cause a flight of uninsured deposits from smaller, less diverse banks to larger, more diverse ones,” Oppenheimer analyst Chris Kotowski said in a note to clients.

Correction: The SPDR S&P Regional Banking ETF fell 16% last week. An earlier version misstated the percentage.

JPMorgan Chase CEO Jamie Dimon on Monday warned that a “very, very serious” mix of headwinds was likely to tip both the U.S. and global economy into recession by the middle of next year.

Dimon, the chief executive of the largest bank in the U.S., said the U.S. economy was “actually still doing well” at present and consumers were likely to be in better shape compared to the 2008 global financial crisis.

“But you can’t talk about the economy without talking about stuff in the future — and this is serious stuff,” Dimon told CNBC’s Julianna Tatelbaum on Monday at the JPM Techstars conference in London.

Among the indicators ringing alarm bells, Dimon cited the impact of runaway inflation, interest rates going up more than expected, the unknown effects of quantitative easing and Russia’s war in Ukraine.

“These are very, very serious things which I think are likely to push the U.S. and the world — I mean, Europe is already in recession — and they’re likely to put the U.S. in some kind of recession six to nine months from now,” Dimon said.

His comments come at a time of growing concern about the prospect of an economic recession as the Federal Reserve and other major central banks raise interest rates to combat soaring inflation.

Speaking to CNBC last month, Chicago Federal Reserve President Charles Evans said he’s feeling apprehensive about the U.S. central bank going too far, too fast in its bid to tackle high inflation rates.

The Fed raised benchmark interest rates by three-quarters of a percentage point last month, the third consecutive increase of that size. Fed officials also indicated they would continue hiking rates well above the current range of 3% to 3.25%.

Dimon said that while the Fed “waited too long and did too little” as inflation jumped to four-decade highs, the central bank is “clearly catching up.”

“From here we let’s all wish him success and keep our fingers crossed that they managed to slow down the economy enough so that whatever it is, is mild — and it is possible,” he added.

Dimon said he couldn’t be sure how long a recession in the U.S. might last, adding that market participants should assess a range of outcomes instead.

“It can go from very mild to quite hard and a lot will be reliant on what happens with this war. So, I think to guess is hard, be prepared.”

Dimon said the one guarantee he could be sure of was volatile markets. He also warned that this could coincide with disorderly financial conditions.

Asked for his views on the outlook for the S&P 500, Dimon said the benchmark could yet fall by “another easy 20%” from current levels, adding that “the next 20% would be much more painful than the first.”

Speaking to a roomful of analysts and investors in early June, Dimon said he was preparing the bank for an economic “hurricane” caused by the Federal Reserve and Russia’s war in Ukraine.

“JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet,” Dimon said at the time. He advised investors to do the same.

Market participants are monitoring a highly anticipated inflation print on Thursday as well as a slew of corporate earnings.

JPMorgan is scheduled to release third-quarter financial results on Friday.

Shares of the bank are down roughly 33% year-to-date.

JPMorgan Chase has hired a Singapore-based quantum-computing expert to be the bank’s global head for quantum communications and cryptography, according to a memo obtained by CNBC.

Charles Lim, an assistant professor at the National University of Singapore, will be focused on exploring next generation computing technology in secure communications, according to the memo from Marco Pistoia, who runs the bank’s global technology applied research group.

Lim is a “recognized worldwide leader” in the area of quantum-powered communications networks, according to Pistoia.

Hired from IBM in early 2020, Pistoia has built a team at JPMorgan focused on quantum computing and other nascent technologies. Unlike today’s computers, which store information as either zeros or ones, quantum computing hinges on quantum physics. Instead of being binary, qubits can simultaneously be a combination of both zero and one, as well as any value in between.

The futuristic technology, which involves keeping hardware at super-cold temperatures and is years away from commercial use, promises the ability to solve problems far beyond the reach of today’s traditional computers. Technology giants including Alphabet and IBM are racing toward building a reliable quantum computer, and financial firms including JPMorgan and Visa are exploring possible uses for it.

“New horizons are going to become possible, things we didn’t think would be possible before,” Pistoia said in a JPMorgan podcast interview.

In finance, machine-learning algorithms will improve to help fraud detection on transactions and other areas that involve “prohibitive complexity,” including portfolio optimization and options pricing, he said.

Drug development, materials science for batteries and other areas will be transformed by the dramatically advanced computing, he added.

But if and when the advanced computing technology becomes real, the encryption techniques that underpin the world’s communications and financial networks could immediately be rendered useless. That has spurred the study of next generation quantum-resistant communication networks, which is Lim’s area of expertise.

New forms of cryptography and secure messaging are needed ahead of quantum supremacy, or the point when quantum computers are able to perform calculations beyond the scope of traditional computers in any reasonable time frame, Pistoia said during the podcast.

That could happen by the end of the decade, he said.

The quantum advantage precedes that development and could happen as soon as two or three years from now, he said. At that point the new computers are more powerful and accurate than today’s versions but they are competitive.

“Even now that quantum computers are not yet that powerful, we don’t have so much time left,” Pistoia said in the podcast. That’s because bad actors are already preserving private communications to attempt to decrypt it later when the technology allows for it, he said.

Lim will “pursue both foundational and applied research in quantum information, focusing on innovative digital solutions that will enhance the security, efficiency, and robustness of financial and banking services,” Pistoia said in the memo.

Lim is a recipient of the National Research Foundation Fellowship in Singapore and won the National Young Scientist Award in 2019 for his work in quantum cryptography, said Pistoia.

Last year, Lim was asked to lead his country’s effort to create quantum-resistant digital solutions, and he has been involved in international efforts to standardize quantum-security techniques, Pistoia added.

Goldman Sachs on Monday posted profit and revenue that exceeded analysts’ estimates as fixed income traders generated roughly $700 million more revenue than expected.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $7.73 vs. $6.58 expectedRevenue: $11.86 billion vs. $10.86 billion expected

Second-quarter profit fell 48% to $2.79 billion, or $7.73 a share, driven by industrywide declines in investment banking revenue. Still, the per share results were more than a dollar higher than the average analyst estimate reported by Refinitiv.

Revenue fell 23% to $11.86 billion, which was a full $1 billion more than analysts had expected, driven by a 55% surge in fixed income revenue.

The bank’s fixed income operations generated $3.61 billion in revenue, topping the $2.89 billion StreetAccount estimate. Goldman attributed the performance to “significantly higher” trading activity in interest rates, commodities and currencies. Equities revenue rose 11% to $2.86 billion, edging out the $2.68 billion StreetAccount estimate.

Goldman shares were up about 4% in premarket trading.

“We delivered solid results in the second quarter as clients turned to us for our expertise and execution in these challenging markets,” CEO David Solomon said in the release.

“Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment, dynamically manage our resources and drive long-term, accretive returns for shareholders,” he said.

Goldman tends to outperform other banks during periods of high volatility, as displayed by the firm’s strong fixed income results.

Similar to rivals including JPMorgan Chase and Morgan Stanley who posted steep declines in second-quarter advisory revenue, Goldman said investment banking revenue dropped 41% to $2.14 billion, slightly higher than the $2.07 billion estimate. The firm blamed a sharp slowdown in equity and debt issuance in the quarter, one of the casualties of surging interest rates and declines across financial assets.

The bank said its deals backlog shrank compared with the first quarter, which could indicate that potential mergers and IPOs are being killed instead of being pushed back into future quarters.

Goldman also tends to benefit from rising asset prices through its various investment vehicles, and so broad declines in financial assets stung the firm in the quarter.

Asset management revenue fell 79% from a year earlier to $1.08 billion, edging out the $924.4 million estimate. The decline came from losses in publicly traded stocks and smaller gains in private equity holdings, the bank said.

“Macroeconomic concerns and the prolonged war in Ukraine continued to contribute to the volatility in global equity prices and wider credit spreads,” the bank noted.

Last week, JPMorgan and Wells Fargo also posted write-downs tied to declines in loan books or equity holdings.

Goldman’s consumer and wealth management revenue rose 25% to $2.18 billion, essentially matching analysts’ estimates, on rising management fees, credit card balances and deposits in its digital banking business.

Goldman shares have fallen 23% this year through Friday, worse than the 16% decline of the KBW Bank Index.

Last week, JPMorgan and Wells Fargo posted second-quarter profit declines as the banks set aside more funds for expected loan losses, while Morgan Stanley disappointed after a bigger-than-expected slowdown in investment banking. Citigroup topped expectations for revenue as it benefited from rising rates and strong trading results.