JPMorgan CEO predicts worsening situation for banks due to overregulation
Jamie Dimon, the CEO of JPMorgan Chase, has warned that there could be more trouble ahead for US banks if the Federal Reserve responds to the current banking crisis by overregulating the sector. Dimon called it a “supervision problem”, with the bank CEOs and board members at fault. He argued that adding more regulations would not be the solution to the crisis, as it makes it harder for banks to do business, and proposed a holistic approach to modifying regulations.
He questioned the effectiveness of stress tests, saying that companies that solely focus on them could be overlooking other issues. This is not the first time a JPMorgan executive has expressed issues with banking regulations, with Bob Michele, the CIO of J.P. Morgan Asset Management, also raising concerns.