Damon (JPMorgan) blames regulators for banking crisis, fears ‘overreaction’

Jamie Dimon, CEO of JP Morgan, who recently bought the assets of First Republic Bank after it went bankrupt, outlined his views on the banking crisis. The executive tells regulators to put an end to financial tensions, but warns that they could go down the wrong path in the coming years.

“I think the situation will get worse for banks because there will be more regulations, more rules, more requirements,” JPMorgan’s CEO said in an interview with Bloomberg. “If there is an excess of some of the rules and requirements and regulations… some of these community banks tell me they have more people coming into compliance than necessary.”

“We need to end the banking crisis,” Dimon said. “Whatever the FDIC, the FCC, and the Fed can do to improve the situation, they can.” However, he referred to them as the ones in charge, stating that they “must have better management of the smaller banks if they don’t want to be taken by surprise constantly”.

Dimon said that while CEOs and boards at banks should be held accountable, “I think there should be humility on the part of regulators.” “They should look at it and say, ‘We were part of the problem,’ instead of just pointing fingers.” The executive defended that the regional banks’ position was “very strong”.

charge against Trump

On the other hand, Jamie Dimon attacked former President Donald Trump over the current debt ceiling doubts which, if no deal is reached soon, will lead to the country ‘defaulting’ in June. “It’s potentially catastrophic,” Damon explained.

“I don’t think it’s going to happen, because it gets catastrophic, and the closer you get, you panic,” CEO Dimon said Thursday. “It affects contracts, collateral, clearinghouses, and customers; and it affects customers differently around the world. So you have to anticipate what people will do.”