Photo: By Taylor.McBride™ on flickr
Now a third Canadian has beef with Jamie Dimon.Dimon’s tiffs with our northern neighbour started when JPMorgan CEO lashed out at Bank of Canada Governor Mark Carney over stringent banking regulations during a private meeting at a International Monetary Fund Conference in Washington D.C. on September 23.
(There’s a chance negative sentiment between the two may have begun brewing last year, when Carney used a quip alluding to Dimon and his daughter at a public speech in Berlin.)
Dimon has been openly hostile against Basel III – a bundle of proposed reforms that raise capital requirements and are aimed at safeguarding global banks from future collapse.
Then Eric Sprott, a hedge fund manager in Canada, threw a punch at Dimon, and said his objections to Basel III reflect an “inability to acknowledge the banking crisis.”
Now, another Canadian banker is throwing in his thoughts on Dimon. The Financial Post recently interviewed a senior bank executive from Canada and gathered his opinions on Dimon’s opposition to regulation. The banker has rather scathing thoughts on Dimon – including calling him “absolutely wrong” on arguing against the proposed reforms and “idiotic” for attacking Carney.
Here are some of the more interesting bits the banker had to say:
- Dimon is absolutely wrong at this point to try and argue that more stringent regulation in aid of trying to prevent a reoccurrence of the greed-induced self immolation that the banks were guilty of in 2008 is inappropriate.
- He is completely at sea in relation to where the peoples minds’ are. The people are pissed off to the gills that TARP was necessary; they understand now that it was necessary because banks are not like any other employer because they are also the source of credit for the economic engine, without which the economic engine can’t tick over.
- To avoid a recurrence is to do one of two things, we can make the bank smaller by breaking you up, so that you are not too big to fail; or we can say you can continue to be big but we are not rescuing you again. You [the bank] will carry your own capital for that purpose. It is basically the concept of embedded capital. If you are too big to fail you will have more capital and bigger reserves.
- Dimon is totally out to lunch. In contrast, Carney is not the heavy handed beady eyed regulator who sees evil in every commercial enterprise. He is a street guy, from the Street and of the Street. But he knows and understands the Street and to attack him personally is absolutely idiotic.