Credit Suisse is just the 'tip of the iceberg' as banking turmoil snarls financial markets, JPMorgan Asset Management investment chief says

• JPMorgan Asset Management's CIO predicts more pain ahead for the banking sector and the economy.
• Turmoil at Credit Suisse is just the "tip of the iceberg," JPMorgan's Bob Michele told Bloomberg.

JPMorgan Asset Management Chief Investment Officer says the contagion that's gripped the global banking sector has just begun as turmoil erupts at Credit Suisse on the heels of the largest US bank failure since 2008.

"You're going to get those long and variable, cumulative and lagged impacts hitting the market further. I think this is the tip of the iceberg," Bob Michele said on Bloomberg TV Wednesday.

Michele added: "I think there's a lot more consolidation to come, a lot more pain yet to come."

Credit Suisse shares shed as much as 30% on Wednesday as waning investor confidence in the bank ws sparked by one of the bank's largest shareholders stating that it would not lend any further financial support. Shares of Credit Suisse endured their largest single-day selloff Wednesday.

The volatility follows the collapse of Silicon Valley Bank, the second-largest US bank failure ever. Add that that the closure of Signature Bank by regulators and the wind down of Silvergate Bank, and investors are bracing for a full-blown crisis in the sector.

The JPMorgan exec says a recession is "inevitable" as panic ripples through the banking world, adding that the Federal Reserve will mostly likely pause interest rate hikes on concerns that the economy may be too fragile to handle even higher interest rates.

The market will go through a "washing out process" in the coming months, Michele says, adding that "we expect more problems."