JPMorgan’s chief executive Jamie Dimon called new international bank capital rules “anti-American” and said the U.S. should consider leaving the Basel group of global regulators, the Financial Times reported.”I’m very close to thinking the United States shouldn’t be in Basel any more. I would not have agreed to rules that are blatantly anti-American,” Dimon told the FT. “Our regulators should go there and say: ‘If it’s not in the interests of the United States, we’re not doing it’.”
His statements came after the G7 economists and bankers restated their commitment to “implement fully” the Basel III regulations this weekend.
This is not the first time Dimon has criticised bank regulations.
Back in June at the American Bankers Association conference in Atlanta, George, Dimon confronted Federal Reserve chairman Ben Bernanke with pointed questions about Basel III and Dodd-Drank during the Q&A session.
“We know there are 300 rules coming,” he told Bernanke. “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 asked the Federal Reserve chairman.
Basel III was created to make a safer financial system by requiring banks to shore up risk-absorbent “Tier 1” capital to at least 7% of risk-weighted assets. The largest banks such has JPMorgan have to reach 9.5%.
While Dimon tells the FT that he’s supportive of requiring banks to have more capital, he believes the Basel Committee’s move to impose an additional charge on the largest banks goes to far.
He also criticised global liquidity rules as being unfair, saying that regulations view European covered bonds as highly liquid while government-backed mortgage-backed securities in the U.S. are discounted, the FT reported.
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