Jamie Dimon Rips 'Stupid Calculations' In Proposed Banking Reforms, Calls For Regulatory Overhaul

JPMorgan Chase & Co. JPM CEO Jamie Dimon delivered a sharp critique of recent regulatory efforts on Monday, calling for banks to take a firmer stance against rules he believes are misguided.

Speaking at an American Bankers Association conference, Dimon argued that overlapping regulations have created an unfair playing field, leading to unjust penalties for financial institutions. Reuters reports.

In his comments, Dimon, who heads the nation’s largest lender, expressed frustration over what he termed as "stupid calculations" in new capital requirements. He specifically addressed the upcoming Basel III endgame reforms, which aim to strengthen the banking industry's resilience against economic downturns.

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Dimon cautioned that these new rules could place undue strain on banks, particularly those categorized as globally significant. "The biggest problem I have with all these overlapping rules is that we are not stepping back and saying, what could we do better to make the system work better," he said.

Earlier this year, U.S. regulators suggested raising big bank capital by 19%, only to revise that figure to 9% in September. However, even with this concession, critical details remain unresolved, especially as the country approaches the presidential election in early November.

Why It Matters: Dimon’s remarks follow mounting concerns over the increasing complexities in the regulatory landscape. He stressed that current rules are hurting lower-paid individuals and smaller companies, which face additional hurdles from compliance.

In addition to regulatory issues, Dimon highlighted several global risks during JPMorgan's third-quarter earnings call earlier this month. In those remarks, he cited geopolitical tensions and fiscal imbalances as critical concerns, warning that such risks could have far-reaching effects on economic stability.

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Image via Benzinga/ Dustin Blitchok