In a recent annual convention, Jamie Dimon, Chairman and CEO of JPMorgan Chase, expressed significant concerns regarding the current state of banking regulations in the United States under the Biden-Harris administration, describing them as an “onslaught.” Dimon, who leads the largest U.S. lender, criticized the “overlapping” regulations related to capital requirements, card payments, and open banking during a conversation with the American Bankers Association (ABA) President and CEO, Rob Nichols.
Dimon emphasized the necessity for banks to “fight back” against these regulatory pressures, noting that many financial institutions hesitate to oppose regulators due to potential punitive actions. His comments echoed the opening remarks of Nichols at the conference. Nichols reported that American banks remain robust, well-capitalized, and resilient despite facing numerous regulatory challenges. He highlighted the ABA’s ongoing advocacy efforts to oppose these regulatory changes, using data to demonstrate the potential negative impact on American consumers and the broader economy.
Nichols also disclosed that the ABA is engaged in five active litigation cases against various federal and state agencies. Dimon further added that their legal actions are in response to regulations perceived as unfair and detrimental to companies and lower-income individuals. Upcoming proposals under Basel III, introduced by U.S. regulators in July 2023, aim to increase capital requirements to help banks better withstand economic shocks, aligning with international standards set by the Basel Committee on Banking Supervision.
Last month, the Federal Reserve’s regulatory head, Michael Barr, presented a plan to raise capital requirements for large banks by 9%, a reduction from an initial 19% increase. This adjustment was a considerable concession to Wall Street banks, which had lobbied against the original proposal. Dimon remarked on the necessity of legal action if disputes with regulators escalate, emphasizing a readiness to engage in prolonged battles if required.