‘It’s going to get worse for banks’ — JPMorgan CEO on overregulation
May 11. 2023
By Ciaran Lyons
JPMorgan CEO says the Fed should be less focused on adding more rules and regulations for banks and more on fixing the banking crisis.
The CEO of JPMorgan Chase — which recently took over failed First Republic Bank — believes there could be more pain ahead for United States banks if the Federal Reserve goes into crisis mode with overregulation.
In a Bloomberg television interview on May 11, JPMorgan Chase Chair and CEO Jamie Dimon said he believes it's “going to get worse for banks” unless the Federal Reserve takes proactive measures beyond simply creating more regulations.
Three major U.S. banks collapsed in just the first few months of the year, including Signature Bank, Silicon Valley Bank and First Republic Bank.
Dimon said that it’s “a supervision problem” with the bank CEOs and board members as “people to blame,” albeit related, as supervisors usually focus on if they are abiding by regulations.
However, Dimon believes adding more regulations to The Federal Reserve’s already 200,000-page long stress test is not the solution to the current banking crisis.
He argued that more regulations make it harder for banks to conduct business, noting that “some of these community banks now have more compliance people than loan officers.”
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