In a bold and defiant move, JPMorgan Chase CEO Jamie Dimon has declared war on multiple US financial regulations, promising to fight back against any that he deems detrimental to bank safety. The 68-year-old head of the largest lender in the US, known for his blunt and outspoken nature, has launched a scathing critique of regulations surrounding capital requirements, card payments, and open banking, labelling them redundant, poorly designed, and ultimately harmful.
Dimon, who has previously been floated for senior roles in US economic policy, has asserted that banks are being unfairly targeted and burdened by regulations that are hindering their ability to operate effectively. He has even gone so far as to say that JPMorgan Chase is prepared to take legal action against these regulations, stating, “We are suing our regulators over and over and over because things are becoming unfair and unjust, and they are hurting companies, a lot of these rules are hurting lower-paid individuals.”
Specifically, Dimon has expressed his displeasure with the Basel III endgame, a set of proposals aimed at aligning US regulatory standards with those of the Basel Committee on Banking Supervision. He has criticized key elements of the framework, including the capital surcharge for global systemically important banks, which he considers “stupidest,” the operational risk calculations, which he labels “ridiculous,” and the inconsistencies in the liquidity coverage ratio.
Dimon’s frustration extends to the new “open banking” rules from the Consumer Financial Protection Bureau, which aim to simplify the process for consumers to switch between financial service providers. While not categorically opposing the concept of open banking, Dimon has expressed concerns about its potential to jeopardize consumer data and increase the risk of fraudulent money transfers.
Beyond specific regulations, Dimon has called for a broader reassessment of the regulatory landscape, arguing that the current approach is creating unnecessary complexity and hindering the overall functioning of the financial system. He emphasized the need to step back and assess how regulations can be improved to create a more efficient and effective system.
Dimon’s open and aggressive stance against US financial regulations signals a growing rift between Wall Street and regulators. It remains to be seen how this escalation will play out, but it is clear that the battle for control over the financial sector is far from over. Dimon’s willingness to challenge the status quo and his vocal criticism of regulations are sure to raise eyebrows and spark debate within the financial industry and beyond.
