NEW YORK – JPMorgan Chase CEO Jamie Dimon blasted tougher capital rules proposed by U.S. regulators, telling investors Monday they could prompt lenders to withdraw and stall economic growth.
The proposal to force banks to set aside more capital to protect against risks was “extremely disappointing” and involved a “lack of transparency” from regulators about the rationale, Dimon told a conference At New York.
“I would not be a big buyer of a bank,” added the president of the largest bank in the United States, provoking laughter from the audience. “I would be no better than equal weight.”
JPMorgan bought First Republic earlier this year in a government-backed deal.
Dimon questioned what regulators were trying to accomplish with the rules. “All I want is fairness, transparency and openness,” he said.
The Federal Reserve, the Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency declined to comment.
Dimon said he believes the Chinese market is no longer as lucrative as it once was. He also said his takeaway from a trip he took to China in May for the first time in four years was “very cautious.”
“As far as our own business is concerned, the risk-reward ratio (from China), which was very good, is now acceptable. The risk is bad,” he said, adding that the bank was careful in managing its risk.
China economy Growth was slow in the second quarter, with gross domestic product increasing only 0.8% from the previous quarter.
Dimon warned of Chinese uncertainty economy hurting investor confidence and also suggesting that the US and China need “real engagement” on security and trade issues.
In the United States, although the consumer and banking sector remains strong, Dimon said he is more cautious than others about the economic environment.
“I just think people make the mistake of looking at the numbers in real time and not looking forward. And the future is marked by quantitative tightening. We have spent money like drunken sailors all over the world, this war in Ukraine continues,” he said, adding that assuming the environment would boom for years was a huge mistake.
Quantitative tightening refers to a reversal of the massive asset purchases undertaken by central banks to support bond markets when the coronavirus hit in 2020 and during the global financial crisis 15 years ago.
Even if the economy The situation currently appears dynamic, but the impact of withdrawing fiscal stimulus could only become clearer over the next 12 to 18 months, he warned.
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