Jamie Dimon Says Trump's Plans To Loosen Regulations Have Bankers 'Dancing In The Street'

JPMorgan Chase JPM CEO Jamie Dimon is optimistic about President-elect Donald Trump's plans to cut back on regulations and he says Wall Street bankers are thrilled. In a recent talk during the APEC CEO Summit in Peru, Dimon said that the industry is hopeful that Trump's win will result in less red tape, allowing banks to do more of what they do best: lend money.

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"A lot of bankers, they're like dancing in the street because they've had successive years and years of regulations, a lot of which stymied credit," Dimon said. His point is that all the rules implemented over the past years have made it harder for banks to lend money, impacting businesses and the overall economy.

Regulations That Hold Banks Back

Dimon explained that banks in the U.S. used to lend out $100 for every $100 in deposits they held. But now, with all the restrictions, they only lend about $65 for every $100 in deposits. He feels that tougher laws have made it difficult for banks to perform their functions and that reducing these rules could help.

"If that's what you want, if for some reason the regulators think they're geniuses and that's the best way to run the banking system, so be it," Dimon said. He also pointed out that regulators likely didn't anticipate the negative effect that their rules would have on credit and lending.

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Why Banking Regulations Are Important

Banking regulations were put in place primarily to ensure the stability and safety of the financial system, protect consumers and prevent reckless behavior that could lead to economic crises. After the 2008 financial crisis, regulations were tightened to reduce the risks banks could take with their lending and investment practices. These rules are crucial in maintaining trust in the banking sector, preventing another financial meltdown and ensuring that banks operate responsibly without jeopardizing the broader economy.

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Hope for Change

Dimon applauded Trump's intentions to streamline government and reduce the regulatory burden, highlighting that the right changes could help bankers and many industries. "You could talk to any industry and they'll give you examples of regulations that could be reduced to make it easier for them to do business while keeping the country safe," Dimon added.

Trump has already started putting together a team to tackle these issues. He recently announced that Tesla CEO Elon Musk and pharma entrepreneur Vivek Ramaswamy would lead the Department of Government Efficiency (DOGE), a new task force focused on cutting down excessive regulations. The goal is to reduce wasteful government spending and restructure federal agencies.

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