Jamie Dimon just confronted Ben Bernanke at the Fed Chairman’s big speech.And now everyone is talking about their interaction — Dimon instantly became Wall Street’s hero.
He must be having trouble behind the scenes communicating that enough is enough (about what many bankers consider excessive regulation) to Bernanke, says Steve Liesman on CNBC.
One of the things the JPMorgan CEO was talking about was a 3% surcharge on banks just for being big, and then he asked the chairman, “Has anyone looked cumulative effect of all these regulations, and could they be reason it’s taking so long for credit and jobs to come back?”
He’s not the only one with the opinion that banks are facing too many regulations and that it’s hurting lending and job growth. Just yesterday we got a text from a friend at a big bank. He wrote: “The Obama administration continues to beat up on the banks. Not a great way to get more lending to help job growth.”
“All of the new capital requirements and regulatory uncertainty has everyone grasping onto their cash/cash-equivalents such as short-dtd Treasuries.”
Along the same lines, Dimon also said he’s afraid in 10 years someone will write a book that we did more harm than good with all the measures government used to help recovery.
“I don’t personally buy the argument that because it was a bad crisis, it has to take a long time to recover.” He then gave the chairman a laundry list of ways the financial system is stronger than before the crisis.
“That list you gave me made me feel pretty good for a while. It sounded like we’re getting a lot done,” Bernanke replied. Everybody laughed.
Mr. Bernanke then said he “can’t pretend” that anybody knows what the right balance of regulation is going to be, but that they’re going to try to strike a balance that prevents future crises but keeps banks lending, according to the WSJ.