JPMorgan’s outspoken chief executive Jamie Dimon is known for being vocal against more regulations on the financial industry.
In his annual letter to shareholder, he writes:
As a result of Dodd-Frank, we now have multiple regulatory agencies with overlapping rules and oversight responsibilities. Although the FSOC was created, it is proving to be too weak to effectively manage the overlap and complexity. We have hundreds of rules, many of which are uncoordinated and inconsistent with each other. While legislation obviously is political, we now have allowed regulation to become politicized, which we believe will likely lead to some bad outcomes.
To better explain his point, he included an interesting chart in his letter. He notes that the chart assumes these activities are conducted in a systemically important bank holding company (BHC).
- The Council, through the Office of Financial Research, may request reports from systemically important BHCs
- The FDIC may conduct exams of systemically important BHCs for purposes of implementing its authority for orderly liquidations but may not examine those in generally sound condition
- The Dodd-Frank Act expanded the FDIC’s authority when liquidating a financial institution to include the bank holding company, not just entities that house FDIC-insured deposits
All that just gave us a headache. Here’s the chart:
Photo: JPMorgan Shareholder Letter